The Canadian greenback is intently monitoring threat sentiment, in accordance with analysts from TD Securities. They see the USD/CAD pair testing the 1.34 stage once more.
“CAD has intently tracked threat sentiment for the reason that begin of COVID. It is often a high-beta forex. But a lot of CAD’s focus has fallen to world drivers, particularly because it pertains to shifts within the broad USD.”
“Despite the fact that threat urge for food has turned much less supportive, USDCAD has nonetheless marched decrease. That is Unsustainable. On account of different forces at work, USDCAD doubtless lurches larger within the weeks forward, particularly if we see a broader USD correction.”
“Positioning and different tactical drivers might insulate CAD in opposition to crosses like NZD, AUD, and GBP, the place our dashboard appears extra excessive and idiosyncratic elements, likeBrexit, are again in play.”