Canadian Dollar: Further gains eye 1.35–1.37 against US Dollar - Scotiabank
Scotiabank strategists Shaun Osborne and Eric Theoret report USD/CAD trading near equilibrium around 1.3870, with Canadian Dollar (CAD) fundamentals supported by narrower front-end spreads and firm crude prices. They see investors relatively unconcerned by looming US tariff deadlines.
Scotiabank strategists Shaun Osborne and Eric Theoret report that USD/CAD is trading near equilibrium around 1.3870, with Canadian Dollar fundamentals supported by narrower front-end spreads and firm crude prices. Investors appear relatively unconcerned about pending US tariff deadlines. Technical analysis suggests a strong bearish trend, anticipating selling interest near 1.39, with downside risks towards 1.3817 and potentially the 1.35–1.37 range.
The Canadian Dollar is performing marginally better than other G10 currencies despite softer global stocks and a mild rebound in the US Dollar. The fair value estimate for spot has declined to 1.3843, indicating the CAD is trading close to its estimated equilibrium. While ongoing tariff deadline talks remain unresolved, particularly on automobiles, the prevailing technical dynamics suggest a test of the 1.3817 level. Resistance is identified at 1.4000/25.
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