The CAD has underperformed last week, losing ground on the generally softer USD. Economists at Scotiabank believe that the USD/CAD pair could enjoy further gains this week.
CAD’s struggles continue
“On the charts, the USD still looks somewhat overextended but overbought conditions have eased.”
“The CAD’s inability to take advantage of the soft USD last week, easily relinquishing gains below 1.3650, leave the charts looking more USD-bullish.”
“USD gains can extend through the 1.38 area to retest 1.3850/60 this week where trend resistance off the 2020 peak in funds sits. USD gains beyond that point remain questionable but are not entirely to be excluded, with little sign of the USD push higher relenting and the CAD looking friendless.”