CAD Trading Near Equilibrium Amid Looming Tariff Deadlines
Scotiabank strategists Shaun Osborne and Eric Theoret report that the Canadian Dollar (CAD) is trading near equilibrium against the US Dollar (USD), with USD/CAD hovering around 1.3870.
The CAD fundamentals remain supported by narrower front-end spreads and firmer crude prices, leading to a modest decline in Scotiabank's fair value estimate for spot, now at 1.3843.
Investors appear relatively unconcerned about the looming US tariff deadlines, with talks ongoing but remaining stuck on autos.
The technical trend is bearish, with a strong selling interest expected near 1.39 and downside risks rising towards 1.3817 and potentially the 1.35-1.37 range.