USD/CAD LIKELY TO CONTINUE RANGE-TRADING AROUND THE 1.3500 HANDLE – RABOBANK

The 1.3500 magnet theory continues to dominate USD/CAD forecast and trading views, economists at Rabobank say.

Fading any move down towards 1.3300 and any move up towards 1.3700

USD/CAD is still the lowest volatility free-floating USD cross and we see little reason for that to change in the coming month, with the pair likely to continue range-trading around the 1.3500 handle. 

We favor fading any move down towards 1.3300 and any move up towards 1.3700.