Canadian Dollar Eyes Further Gains Amid Stable Fundamentals

Canadian Dollar Gains Continue Amid Firm Crude Prices and Narrower Spreads

According to Scotiabank strategists Shaun Osborne and Eric Theoret, the Canadian Dollar (CAD) is trading near equilibrium at around 1.3870 against the US Dollar (USD), with investors seemingly unconcerned about looming US tariff deadlines.

The strategists point out that fundamental CAD drivers remain supportive, with narrower front-end spreads and firm crude prices contributing to a modest decline in their fair value estimate for spot, which now stands at 1.3843.

Technically, the analysts see a strong bearish trend in USD/CAD, expecting selling interest near 1.39 and highlighting downside risks towards 1.3817 and potentially the 1.35-1.37 range.