US Dollar’s rebound develops a little more traction. However, Shaun Osborne, Chief FX Strategist at Scotiabank, expects USD to weaken from the second quarter of the year.
USD/CAD sellers can be patient for now
I still look for the USD to soften in Q2/Q3 as Fed easing risks are renewed and the US economy slows.
A broader easing in central bank policy in H2 should be supportive for risk appetite and add to USD headwinds later this year. Seasonality also turns generally USD-negative in Q2/Q3.
USD/CAD sellers can be patient for now; levels nearer 1.3500/1.3600 could be seen in the next few weeks.
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