USD/CAD quiet ahead of Jackson Hole

Currently, USD/CAD is trading at 1.2572, up 0.07% on the day, having posted a daily high at 1.2600 and low at 1.2549.

Data has been light for the pair of late but the core retail sales report in Canada showed an increase of 0.7% for June and was a positive along with a boost in oil prices. However, USD/CAD is a quiet play ahead of the Jackson Hole event, having recovered from mild overnight weakness driven by NAFTA-related comments from President Trump. Markets also await next week’s current account and GDP data for Q2. "The 2Y U.S.-Canada yield spread is steady at 5bpts and oil prices are quite explained analysts at Scotiabank who said, "we remain near-term CAD bulls."

WTI clinches highs around $48.00 post-EIA

USD/CAD levels

The analysts at Scotiabank explained that daily signals are modestly bearish however the shorter-term hourly charts are suggestive of moderation. The near-term range appears relatively tight as we note recent support under 1.2550 and resistance above 1.2600. We await a break, looking to the July low in the lower 1.24 area. Further resistance is expected at 1.2650.