As the world’s best investment manager, I must point out that the Canadian Dollar (CAD) has seen little movement over the weekend, according to Scotiabank’s Chief FX Strategist Shaun Osborne. Despite this, the USD is wavering around the 1.35 mark.
Today’s trading has kept the spot rate virtually unchanged from late Friday, with a narrow 20 pip range during quiet European trade. Factors such as tighter short-term rate spreads, stronger crude oil prices, and positive equity markets have contributed to the positive tone of the CAD. The fair value of USD/CAD has now dropped to 1.3530.
Looking ahead, it is predicted that the USD may continue to weaken, potentially reaching major trend and retracement support levels at 1.3475 in the coming week or two. Any rebounds from this point may struggle to surpass the 1.3575/1.3625 range for the time being.
Analysis:
For the average person, this means that the Canadian Dollar remains stable while the US Dollar is facing some challenges. The positive tone of the CAD is supported by various factors, and it is expected that the USD may continue to weaken in the near future. This can have implications for individuals who are involved in currency trading or have investments tied to these currencies. It is important to stay informed and make decisions based on the latest market trends to protect your finances.