Canadian Dollar Shrugs Off US Trade Curbs as Scotiabank Sees CAD Gain

The Canadian dollar has shown resilience in the face of renewed US-Canada trade friction and targeted import bans.

Despite the imposition of restrictions on some Canadian dairy, alcohol, and motorcycle goods set to take effect on September 29, the CAD remained broadly unchanged. Scotiabank's models indicate improving CAD fundamentals alongside a softer USD, with the bank's fair value estimate for USD/CAD down to 1.3736.

Technical signals also lean against the greenback, as the rebound from the late August low has stalled and reversed. Support is seen at 1.3715/35, with downside risk extending towards 1.3500/50.