USD/CAD: Risk appetite remains a headwind for the Loonie – Scotiabank

The CAD is trading little changed against the USD once again. Volatile risk appetite remains a headwind for the Loonie, economists at Scotiabank report.

Valuation and a somewhat overbought USD may limit CAD losses 

“Volatile risk appetite remains a headwind for the CAD but valuation and a somewhat overbought USD may limit losses for now.”

“Markets have little incentive to move an overbought USD significantly higher at this point but there is not much reason to fight the short-term uptrend in funds either.”

“Support is 1.3675/80.”

“Resistance is 1.3815 and (firmer) 1.3865.”