CAD Holds Steady Amid Ongoing Trade Uncertainty
The Canadian Dollar has maintained its range against the US Dollar, despite slightly improved fundamentals for Canada. Scotiabank strategists Shaun Osborne and Eric Theoret note that US yields have eased and spreads narrowed, making the CAD's fundamental backdrop more positive.
However, ongoing trade tensions and comments from Bank of England Governor Mark Carney on potential Canadian retaliation continue to support the US Dollar against the Canadian currency. This uncertainty keeps the USD/CAD pair above its 40-day moving average.
The technical analysis suggests that the pair is pivoting around this key level, with resistance near $1.4125 and support at $1.4060. While the CAD's technical condition remains neutral, trade tensions linger as a major concern for investors.