Scotiabank strategists Shaun Osborne and Eric Theoret report that the Canadian Dollar (CAD) is steady to slightly firmer against the US Dollar (USD), despite weak risk appetite in the broader market. This resilience is attributed to a modest bid for commodity currencies, which has supported the CAD during the session [1]. The strategists highlight that March is nearly concluded, and the CAD may benefit from historically strong performance in April, a trend observed since the 1970s. Although recent years have shown more nuanced results, the tendency for CAD to strengthen against USD in April remains intact [1].
From a technical perspective, USD/CAD has broken above its 200-day moving average at 1.3806 this week, signaling bullish short-term momentum. Scotiabank maintains a technical focus on further upside, targeting the low 1.39s for USD/CAD. Key support levels are identified at 1.3790/00 and 1.3750/60, suggesting that the bullish trend could persist if these levels hold [1].
No specific market reactions or analyst opinions regarding future price movements beyond the technical targets and seasonal trends are provided in the source. The article does not mention any ticker symbols or provide additional forward-looking statements beyond the technical and seasonal analysis [1].
CONCLUSION
Scotiabank sees continued bullish momentum for USD/CAD, targeting the low 1.39s, supported by technical signals and seasonal strength for the CAD in April. The market impact is medium, with the CAD showing resilience despite weak risk appetite. Investors may watch for further upside if support levels hold.