USD/CAD to consolidate within the 1.3120-1.3250 range – OCBC

USD/CAD is posting mildly losses on Monday, down -0.1% to 1.3190, as the loonie is still locked in the 1.3150-1.3200 range. Terence Wu, FX strategist at OCBC Bank, expects the USD/CAD pair to consolidate within a broader 1.3120-1.3250 range.

Key quotes

“Little to no traction for the USD/CAD pair on either side of the 1.3150 to 1.3200 range leaves the pair locked in.”

“Soft retail sales print weighs on the CAD, but front-end yield differentials are widening in the CAD’s favour.”

“Overall, different drivers pulling the loonie in opposite directions, leaving the pair still consolidative within a broader 1.3120 and 1.3250 range.”