The Canadian dollar has firmed in the past month, riding a backdrop of upside economic surprises and stronger commodity prices, explained analysts at the National Bank of Canada. They think investors should tread carefully in the run-up to the US presidential election. They kept its target of USD/CAD at 1.38 in the short-term. Key Quotes: “The Canadian dollar ended the month of July well below its 200-day moving average against the USD, riding a backdrop of upside economic surprises and stronger commodity prices. The improving global economic backdrop must still be interpreted with caution. Upside economic surprises have been concentrated in the advanced economies. In emerging markets – 60% of global GDP – economic indicators continue to disappoint. Given this poor showing, we see limited upside for commodity prices over the next three months.” “Keep in mind that demand for oil is also likely to be dampened by the resurgence of new Covid-19 cases in many countries. Our target for WTI over the coming months is $37 a barrel, down from $42.” “The prospect of a drop in the price of WTI at a time when Western Canadian Select is trading at a widening discount to WTI makes us more cautious about the outlook for the CAD, especially considering Washington’s renewed protectionism.” “We maintain our three-month target of C$1.38 to the USD.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next China: Despite July export growth, the road ahead may be still bumpy – Â BBVA FX Street 2 years The Canadian dollar has firmed in the past month, riding a backdrop of upside economic surprises and stronger commodity prices, explained analysts at the National Bank of Canada. They think investors should tread carefully in the run-up to the US presidential election. They kept its target of USD/CAD at 1.38 in the short-term. Key Quotes: “The Canadian dollar ended the month of July well below its 200-day moving average against the USD, riding a backdrop of upside economic surprises and stronger commodity prices. The improving global economic backdrop must still be interpreted with caution. Upside economic surprises have been concentrated… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.