Canadian Dollar: Bullish turn targets 1.40 against US Dollar – Scotiabank
Scotiabank strategists Shaun Osborne and Eric Theoret report the Canadian Dollar (CAD) modestly stronger versus the US Dollar, helped by firmer Bank of Canada rate expectations and narrowing US–Canada yield spreads. Fair value for USD/CAD is estimated close to spot around 1.4140.
The Canadian Dollar (CAD) is showing a bullish turn, with strategists from Scotiabank predicting it could reach 1.40 against the US Dollar. This upward movement is driven by expectations of a stronger Bank of Canada rate and a narrowing US-Canada yield spread. Currently, the fair value for USD/CAD is estimated at approximately 1.4140.
On the technical side, the pair has recently reversed from recent highs, with support down towards 1.40 and resistance above 1.42. The Canadian Dollar has started the North American session with a modest gain of 0.2% compared to the US Dollar, while showing losses against most of the G10 currencies as the US Dollar experiences broader weakness.
While the recent bearish turn in USD/CAD is notable, the extension below 1.4200 is crucial, as a move to this level would signal a shift in bullish momentum and weaken support between the current spot and 1.40. Resistance is now anticipated to be above 1.4200.
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