USD/CAD: Next potential support zone located at 1.3300/1.3280 – SocGen

Losses for USD/CAD have snowballed following the break below the 200-DMA of 1.3510. Economists at Société Générale analyze the pair’s outlook.

BoC’s rate cuts could start in 2024

Inflation data is due today in Canada (consensus 2.9% vs. previous 3.1%).

BoC Governor Macklem said on Monday that rate cuts could start in 2024 if underlying inflation slows for ‘a number of months’. The trimmed mean CPI moderated to 3.5% in October but has not made much progress since May.

Technically, losses for USD/CAD have snowballed to 1.3350 following the break below the 200-DMA (1.3510) after the Fed last week. Next potential support zone is located at 1.3300/1.3280.