CAD flat despite China trade agreement – Scotiabank

💡 DMK Insight

The Canadian Dollar’s stagnation signals a lack of momentum in key markets right now. With US equity futures showing only modest bids and crude prices failing to provide a lift, CAD traders should be cautious. This indecisiveness could reflect broader economic concerns, especially as traders await more substantial data releases or geopolitical developments. If crude prices remain weak, it could further pressure the CAD, particularly if it breaks below key support levels. Watch for any shifts in sentiment around oil, as a significant drop could lead to a cascading effect on the CAD. Conversely, if equity markets rally, it might provide a temporary boost, but the underlying weakness suggests a potential for further downside. Keep an eye on the daily charts for CAD/USD; a break below recent lows could trigger more selling pressure, while resistance levels will need to be tested before any bullish positions are considered.