On CAD's Standoff with 96 - A Probabilistic Riff
Considering $CAD's current stance at 95.879, I'm thinking the probability of it touching 96.00 before month-end is sitting around 65%. The daily range has been pretty constrained, 95.879–95.879 being particularly 'exciting' today. What's driving this? Mostly the broader USD sentiment and a quiet data calendar. There's not much on the horizon to give it a significant shove either way, suggesting that the path of least resistance for a small technical move like this might just be upwards if the dollar finds any modicum of strength. It's more about the lack of headwinds than any strong tailwinds, really. If we get even a whisper of hawkish sentiment from any Fed speak, that 96.00 level will likely be tapped. Anything more than that, however, feels like a longer shot.