CAD Traders Eye 1.3970/80 Break Amid USD Bearish Trend
According to Scotiabank strategists Shaun Osborne and Eric Theoret, the Canadian Dollar (CAD) is currently trading near its fair value estimate around 1.40 against the US Dollar (USD). Despite being effectively flat versus the USD, the CAD has modestly outperformed other major currencies.
The pair's performance is largely contingent on external factors, with USD/CAD driven by stabilized US/Canada spreads and a positive risk appetite. However, technicals suggest that the trend remains bearish for the USD, with a focus on breaking below 1.3970/80 to drive further gains.
Cad-specific news is limited, but the strategists note that trade concerns remain a background niggle ahead of the August 19 deadline for President Trump's latest tariff salvo. A break under 1.3970/80 would be necessary to drive the next phase of gains in the CAD.