The Canadian Dollar (CAD) perked up noticeably overnight on the news that Prime Minister Trudeau could resign this week. Reports suggesting President-elect Trump could tone down plans for broad tariffs have added to gains, notes Shaun Osborne, chief FX strategist at Scotiabank.
Spot losses need to sustain this break below 1.4335
“Clarity on the domestic political front would be welcome, but if the prime minister resigns, a lengthy leadership contest for the Liberals would presumably follow. Estimates have indicated this could take up to three months. Parliament could be suspended while all this happens “Opposition parties will push for an election, which will also take time to organize.”
“The CAD is getting welcome relief from the short-term headlines, but it may still be some time before the political fog at home clears. On Friday, I noted that the charts did not show any obvious signs that the CAD’s uptrend USD was giving up. However, the technical outlook has changed dramatically so far today.”
“After consolidating around the 1.44 point during the turn of the year, the spot is triggering a double top pattern (1.4465) on the daily chart. The break (so far) below the intermediate low at 1.4335 suggests a possible USD decline back to the 1.4200/10 area in the next 1-2 weeks. However, spot losses need to keep this break below 1.4335.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
