The Canadian Dollar (CAD) remains stable, hovering near the upper 1.35s, a level that has been maintained since late trade on Friday. Governor Macklem is set to deliver a speech in London this morning at 8.25ET, providing insights for investors to consider. Scotiabank’s Chief FX Strategist Shaun Osborne emphasizes the importance of this event.
CAD Faces Resistance at 1.3585/95
Osborne highlights that Governor Macklem’s comments are expected to begin at 8.10ET, followed by a press conference. The focus of the speech will likely be on global trade, with potential implications for monetary policy. In related news, Mark Carney, the former Bank of Canada Governor, has taken on a role as an economic advisor to the Liberal Party, signaling a shift into federal politics.
While the USD experienced gains last week, the short-term outlook for the CAD remains neutral. The currency is currently capped below key resistance levels at 1.3585/95, which includes the 200-day MA and previous USD range lows. A breakthrough above 1.36 could lead to further appreciation into the 1.36s range. Support levels are identified at 1.3550 and 1.3470.
Analysis and Implications for Investors
For investors, the stability of the CAD and upcoming events, such as Governor Macklem’s speech and Mark Carney’s new role, indicate potential shifts in the currency’s value. Monitoring key resistance levels and support levels can provide insights into potential market movements. Additionally, global trade dynamics and policy outlooks are crucial factors to consider when evaluating investment opportunities.