- Credit Agricole (based on CNBC)
The US Dollar weakened against the Loonie yesterday, as hopes of the Fed raising interest rates as early as September were dampened. However, the immediate support cluster, namely the weekly PP, managed to stop the pair from falling deeper. This group of important levels is providing resistance today and keeping the USD/CAD at bay, although risks of it being breached persist if the Fundamental data supports the Buck. The base-case scenario is a slight shift to the downside, while any possible harsh volatility should be limited by the second cluster around 1.2990.
Bearish market sentiment remains unchanged at 73%, while the share of buy commands declined from 70 to 66%.