USD/CAD: Weakness back though the 1.37 area may extend towards 1.3650/1.3660 – Scotiabank

CAD slipped through 1.37 against the USD. Economists at Scotiabank analyze USD/CAD outlook.

Daily close above 1.3710 will keep near-term focus on a bit more topside movement

Spot gains above resistance at 1.3700/1.3710 are USD-supportive on the face of it but the USD is dropping back from early session highs and the short-term pattern of trade suggests the risk of a bit more USD drift in the short run.

Weakness back though the figure area may extend towards 1.3650/1.3660.

A daily close above 1.3710 will keep near-term focus on a bit more topside movement, potentially towards 1.3775.