CAD: Stuck in a clear range - BBH

The Canadian dollar is stuck in a clear range, perhaps a rectangle pattern and the lower end is seen near CAD1.2660 and the upper end is seen near CAD1.2920, according to analysts at BBH.

Key Quotes

“The upper end of the range corresponds to the 50% retracement of the US dollar's slump from May through September.   The lower end was frayed intraday on December 5.  The statement after the central bank meeting the following day showed no urgency to remove additional accommodation.  The broad sideways trading weakens the signals generated by the technical tools we use.  The two-year interest rate differential widened in the US favor by five basis points over the course of last week, but it too appears range-bound.”