FX Strategists at Scotiabank see the pair navigating in the 1.3000/1.3200 range for the time being.

Key Quotes

“Domestic rate expectations are steady with OIS pricing roughly 18bpts of BoC tightening by December. Yield spreads are also unchanged, and CAD continues to trade with a modest discount to our FV estimate of 1.3033. Monday’s release of international securities transactions data is unlikely to be market moving as market participants look to Tuesday’s manufacturing sales and Friday’s retail sales and CPI data. We remain medium-term CAD bulls with a Q3 USDCAD target of 1.28”.

“Momentum indicators are neutral and trend strength indicators have faded. The weekly chart remains bearish following the key reversal from late June however we await a break of the one week range roughly bound between the mid-1.3000 area and 1.3220”.