A push through 1.36 should see spot gains – Scotiabank

The Canadian Dollar (CAD) is little changed and continues to hold close to the levels seen in late trade Friday in the upper 1.35s. Governor Macklem is speaking in London this morning at 8.25ET, Scotiabank’s Chief FX Strategist Shaun Osborne notes.  

CAD holds tight range below key resistance at 1.3585/95

“Comments drop at 8.10ET and there will be a press conference after the event. The speech will cover global trade and remarks that do stray into the policy outlook are likely to reflect the tone of his comments after the last policy decision.”

“Mark Carney is dipping his toe into federal politics after all. He has been appointed as an economic advisor to the Liberal Party (so not, apparently a government position) yesterday with a brief to develop plans to boost growth and productivity.”

“Solid gains for the USD last week still lend a positive tone to the longer-term chart but the short-term picture is neutral, with the USD capped below noted resistance around 1.3585/95 still (200-day MA and USD range lows from earlier in the year). A push through 1.36 should see spot gains extend deeper into the 1.36s. Support is 1.3550 and 1.3470.”