CAD Holds Steady as US Officials Downplay Tariff Impact on Trade
The Canadian Dollar (CAD) has been tracking the broader US Dollar (USD) trend, with USD/CAD experiencing a brief dip before rebounding to trade nearly flat. According to Scotiabank strategists Shaun Osborne and Eric Theoret, this movement is largely driven by comments from United States officials suggesting limited long-term tariff damage.
The officials' remarks offered some hope that the latest tariff blast from Washington would not undermine US/Canada trade relations in the long run, with talks potentially making progress towards a broader agreement before year-end. This sentiment has had little impact on the CAD's technical position, which remains neutral.
Scotiabank's fair value estimate for USD/CAD remains close to spot around 1.40, with the pair currently trading near this level. The 40-day moving average (MA) of 1.4074 is a key support and resistance point, with the CAD holding below USD resistance at 1.4125 and above initial support at 1.4060.