Charts tilt CAD bullish - Scotiabank

The Canadian Dollar (CAD) is one of the weaker major currencies on the session but losses versus the USD amount to a little more than 0.1%. he CAD continues to consolidate early week volatility, Scotiabank's Chief FX Strategist Shaun Osborne notes. 

USD/CAD may face more pressure on key support at 1.4250/60

"The recent trends in hiring have been tracking a little firmer since mid-year, supported by stronger gains in hiring in energy-producing provinces. Data also reflected decent gains in hours worked late last year, rising at a roughly 2.5% annualized clip in Q4 which suggests decent growth momentum into yearend."

"Speaking last night, BoC Governor Macklem cautioned that tariff uncertainty was already weighing on Canadian household and business confidence but stressed that policymakers would have to balance growth and inflation risks in the event of hefty tariffs being imposed on Canada."

"Spot is consolidating but the USD is holding below the 40-day MA (initial resistance at 1.4379) and very significant net USD losses on the week look very bearish on the longer-term chart (outside week/key week reversal). All else equal, this should put more pressure on key support at 1.4250/60 in the coming week and reinforce USD resistance in the 1.4550/1.4600 zone."