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FX Strategists at Scotiabank suggested the pair should meet resistance in the mid-1.2900s and 1.2980.

Key Quotes

“Sentiment is dominating as market participants assess the ongoing turbulence in emerging markets and its implications for global growth and commodity prices. Risk reversals are elevated, pricing a relatively sizeable premium for protection against near-term CAD weakness. CAD’s risk profile leaves it vulnerable to swift, knee-jerk declines in periods of risk aversion”.

“Momentum signals are neutral and trend strength is muted. The one month range implies near-term resistance in the 1.2900- 1.2920 area, with additional resistance at 1.2950 and 1.2980. Near-term support appears limited ahead of 1.2800 and 1.2780″.