USD/CAD likely to look to broader moves in oil prices and the USD – RBC CM

Analysts at RBC Capital Markets suggest that there are no major data releases scheduled in Canada until Thursday’s BoC Financial System Review and USD/CAD is likely to look to broader moves in oil prices and the USD for short-term directional bias.

Key Quotes

‘We note that crude oil still retains an offered tone, with a daily close below nearby support at 47.38 shifting the focus down to 45.93 next. A deeper selloff in crude would be expected to serve as a bullish catalyst for USD/CAD from a cross-asset perspective. USD/CAD features strong support at 1.3424, with a close above resistance at 1.3547 required to underpin bullish sentiment.”