Canadian Dollar: Pressure builds near 1.40 against US Dollar - Scotiabank
Scotiabank strategists Shaun Osborne and Eric Theoret note the Canadian Dollar (CAD) remains under pressure near 1.40 against the Dollar, reflecting a firm USD tone and wider US–Canada front-end spreads.
The Canadian Dollar (CAD) is being pressured near 1.40 against the US Dollar, according to Scotiabank strategists Shaun Osborne and Eric Theoret. This is due to a firm US tone and wider US-Canada front-end spreads. The CAD is currently slightly overvalued compared to its fair value estimate of 1.3910. Upcoming remarks from Bank of Canada Governor Macklem could further highlight inflation concerns and potentially support tighter policy expectations.
The weaker CAD may prove unfavorable for the BoC as it evaluates growing inflation risks. The USD continues to exert pressure on the 50% retracement resistance level of the June/August decline in the USD at 1.3990. Should bullish USD momentum persist, a sustained push above 1.40 could facilitate further gains towards 1.4050/1.4125. Currently, support is hovering around 1.3940/1.40.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
