Dollar Strength Weighs On Canadian Dollar Amid Oil Weakness

The US dollar has gained strength against the Canadian dollar in recent days, pushing the USD/CAD exchange rate above Scotiabank's first resistance area.

The pair closed on Friday at 1.3871, up 0.26% and marking a third consecutive day of gains.

This moderate rise has attracted selling interest, according to Scotiabank, which expects further dollar gains but retains a bearish view over the medium- and long-term horizons.

The bank notes that trend momentum remains USD-bearish across both medium- and long-term oscillator studies, suggesting that any dollar gains will likely draw sellers.