USD/CAD: watch for 1.1000
Analysts at UBS recommend buying USD/CAD on dips with stops below 1.0800 and target at 1.1000.
SEB Bank says that if resistance at 1.0910 is taken out, the pair will extend to August high at 1.0998 ahead of 1.1053.
Fundamentally the pair may be supported by concerns that diverging paths for central bank policy could leave the Bank of Canada on the sidelines even when the Federal Reserve ultimately starts raising rates. The BOC Governor Stephen Poloz said in Jackson Hole that the regulator won't necessarily immediately follow the United States when the Fed starts hiking rates.
Watch the BOC’s decision on Wednesday and employment data from both the US and Canada on Friday.
Chart. Daily USD/CAD