CAD slips from highs versus soft USD. Economists at Scotiabank expect the USD/CAD pair to challenge 1.37 if it manages to stay below the 1.38 level.

Persistent strength above 1.38 will likely prompt a retest of 1.3850/60

“Price action Friday strongly suggested that the broader USD uptrend in place over the past month or so may be stalling. But the intraday rebound in the USD from session lows – so far – looks quite constructive on the short-term charts and underlying trend momentum remains USD-bullish.” 

“If USD/CAD gains are capped around 1.38 intraday, the CAD may have a shot at pushing back towards 1.37.” 

“Persistent USD strength above the figure will likely prompt a retest of 1.3850/60.”