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USD/CAD looks heavy in the near-term – Scotiabank

FXStreet (Edinburgh) - According to Currency Strategist at Scotiabank Eric Theoret, the outlook for the pair appears heavy in the short term.

Key Quotes

“Oil prices remain a primary risk for CAD, even more so following Thursday’s price action in which WTI failed to respond to Thursday’s Fed”.

“Oil market fundamentals are weak, with high inventories and a relatively slow rationalization of global supply”.

“Oil price considerations could easily resume their dominance over CAD, potentially overwhelming the near-term support afforded by relative monetary policy shifts”.

“We look for USDCAD to remain heavy near-term; loss of support intraday at 1.3015 may see losses extend towards 1.28/1.29 fairly quickly where we expect a firmer base to develop”.

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