CAD gets a minor lift ahead of tomorrow’s BoC decision. Economists at Scotiabank analyze USD/CAD outlook.

USD/CAD to retest the low 1.33 zone once below 1.34

A minority of forecasters (including a couple of other Canadian banks and two, large Wall St firms) have joined Scotia’s call for a 25 bps hike this week but this remains a non-consensus call. 

Markets may hold intraday – considering tomorrow’s nontechnical event risk – before a move develops but the technical pointers are tilted lower. 

Resistance is 1.3465 and 1.3525/50.

Below 1.34, spot should retest the low 1.33 zone.