Don’t miss this month’s edition of the George Davis Report, where George discusses the erosion of some topside hurdles for USD/CAD.
What you need to know:
Last month, we highlighted how a shift in US interest rate expectations might have created a headwind for USD gains.
While this is still the case more broadly, recent developments have removed some of the topside hurdles for USD/CAD more specifically.
These include a more dovish Bank of Canada as well as pending seasonal considerations.
In addition, the risk of more choppy market conditions should be taken into consideration as we head toward the US election – especially when overlayed with carry trade developments and the risk backdrop.
We discuss the implications of these developments for USD/CAD, as well reiterating the acute sensitivity of the 1.4000 area
For the trading range:
USD/CAD
Buyers
1.3400/1.3500
Sellers
1.3800/1.3900
