CAD Trades Near Fair Value Against USD Amid Trade Uncertainty

Scotiabank strategists Shaun Osborne and Eric Theoret say the Canadian Dollar is trading near its fair value against the US Dollar, around 1.3842.

The pair's movement has been influenced by trade headlines and weaker oil prices.

Osborne notes that the CAD's downside may be limited unless there is a major trade shock, while short-term technicals remain neutral with a downtrend intact since late June.

The strategists believe that spot could push towards the mid to upper 1.39s due to a mild bullish crossover on the intraday DMI oscillator.