Canadian Dollar Stays Grounded Despite Ongoing Trade Tensions

The Canadian dollar has remained resilient against the US dollar despite ongoing tariff headlines. According to strategists at Scotiabank, the USD/CAD pair has been trading within a well-defined range of roughly 1.35 and 1.37.

This stability is attributed to firm oil prices, which support Canada's major export commodity, and a resilient domestic economy with robust employment figures and GDP growth.

The market has largely priced in the current tariff environment, and any significant escalation or resolution could trigger a breakout from this range. Scotiabank advises that a clear break above 1.3700 would signal a new directional move, while support is seen around 1.3500.