USD/CAD trades little changed on the session. Economists at Scotiabank analyze the pair’s outlook. 

Further strength in commodity prices may give the CAD reason to improve

Further strength in commodity prices may give the CAD reason to improve but, for now, negative spreads and changeable risk appetite seem likely to keep it subdued.

The USD’s early 2024 uptrend remains intact on the chart short-term price action does suggest some resistance developing around the 1.3600 point. High upper shadows on the daily candle chart imply firm selling pressure on USD gains above the figure.

The intraday chart actually shows a clear, bearish rejection of Thursday’s push to the figure zone. Trend momentum remains USD-bullish, however, and spot losses need to extend below 1.3540 to put any sort of technical pressure on the USD from here.