The USD and risk sentiment are the biggest factors driving CAD. Economists at TD Securities analyze Loonie’s outlook.
Fading USD/CAD rallies ahead of 1.38
The direction of the broad USD and risk sentiment will dictate the price action of the Canadian Dollar in the near term.
We like leaning against the recent USD/CAD rally into the October Bank of Canada meeting. We continue to prefer fading ahead of the 1.38 level, suggesting a shift back to the lower end of the range near 1.34.