Canadian Dollar Eyes Bullish Trend as Scotiabank Targets 1.35-1.37 Range

The Canadian Dollar (CAD) is maintaining its bullish trend against the US Dollar (USD), with Scotiabank strategists Shaun Osborne and Eric Theoret expecting it to trade within a range of 1.35-1.37. They report that USD/CAD is trading near equilibrium around 1.3870, driven by narrower front-end spreads and firm crude prices.

The CAD is relatively unaffected by softer global stocks and the mild rebound in the USD, with traders showing little concern about looming US tariff deadlines. Osborne and Theoret note that investors are not overly worried about the possibility of 50% tariffs on Canadian exports, despite ongoing talks between Canada and the US.

Technically, the strategists describe a strong bearish trend in USD/CAD, expecting selling interest near 1.39 and highlighting downside risks towards 1.3817. They caution that mild USD rebounds are likely to draw firm selling interest at this level.