USD/CAD: Close below 1.3260 needed to nullify bull trend – Rabobank

USD/CAD’s bull trend is yet to be nullified, econmists at Rabobank report.

USD/CAD to fluctuate in the 1.34-1.36 range over the coming months

“The main driver of FX markets remains carry and risk sentiment, both of which are likely to drive some upside for USD/CAD. On the flip side, higher energy prices in the second half of the year should provide some support for CAD.” 

“We expect the former drivers to dominate upside from oil prices but the pair is unlikely to break out of the 1.3280 to 1.3880 range this year and we see the primarily fluctuating in the 1.34-1.36 range over the coming months, with the risk skewed to an upside break.” 

“The long term bull trend won’t be nullified until we see a confirmed close below 1.3260 and we see little chance of that happening this year.”