FX Strategist at Scotiabank Eric Theoret noted the pair is extending its sideline theme around 1.3100 amidst a broad-based neutral picture.

Key Quotes

“Oil prices are up on OPEC headlines, delivering modest CAD support as market participants consider calls to ‘extend or deepen’ production cuts at the next meeting in May. The 2Y U.S.-Canada yield spread remains a drag for CAD, hovering around 43bpts at the mid-point of its range from late November. Options markets suggest a continued erosion in the premium for protection against CAD weakness, with some risk reversals testing fresh 2017 lows at levels last seen in mid-December”.

“USDCAD remains range bound, with a fourth consecutive week of consolidation around 1.31. Momentum signals are neutral, trend signals have softened, and the 9 day MA has flattened out. We look to support in the 1.3020-1.3000 area and resistance at 1.31”.