USD/CAD: April is the best month of the calendar year for the Loonie over the past 20 years or so – Scotiabank

The Loonie rebound that really started to get going late in March is set to extend this month as April is good for the CAD from the seasonality point of view, economists at Scotiabank report.

Undertone remains bullish 

“The CAD typically trades somewhat stronger in Q2/Q3 after a soft Q1. April is the best month of the calendar year for the CAD over the past 20 years or so (CAD strengthens 75% of the time for an average return of around 1% or a little more).”

“Trend momentum signals are leaning USD-bearish on the intraday and daily studies while the market is effectively chopping (or hesitating) around trend support at 1.3430, the odds of a deeper USD drop towards 1.3275/1.3325 are growing.”

“USD resistance is 1.3445/50 and (stronger) at 1.3490/00.”