CAD Holds Steady Against USD Amid Bullish Tone

The Canadian Dollar has remained relatively unchanged against the US Dollar, but is outperforming its peers due to firmer oil prices and steady US-Canada front-end spreads.

According to Scotiabank strategists Shaun Osborne and Eric Theoret, the USD/CAD short-term tone is bullish, with gains through the mid/upper-1.38s pointing to further short-term strength.

However, they stress that a significant resistance zone exists between the low/mid 1.39s, defined by trend resistance, moving averages, and retracement resistance.

The focus remains on the Bank of Canada's normalization of monetary policy later this year, driven by persistent core Consumer Price Index (CPI) pressures.