The CAD is down nearly half a percent on the day against the generally firm USD. USD/CAD may retest mid/upper-1.34s, according to economists at Scotiabank.
USD/CAD holds range
“Weak risk sentiment and generally softer commodities are headwinds for the CAD but spot remains within recent trading ranges and we expect scope for losses remains relatively limited for the moment at least.”
Canada releases Jan Housing Starts, Dec Manufacturing Sales (expected down 1.5%) and Jan Existing Home Sales. Soft data may add to pressure on the CAD in the short run, pushing spot towards the mid/upper-1.34s where the USD peaked last week.”
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