USD/CAD Fair Value Focus Amidst Ongoing Trade Tensions
Canadian Dollar strategists at Scotiabank are highlighting that USD/CAD is trading near its fundamental equilibrium, with fair value around 1.38.
The CAD is shrugging off heightened trade tensions with the US, despite President Trump's recent comments about Bombardier jets and the 'unacceptable' CAD imbalance with the US.
Shaun Osborne and Eric Theoret note that recent US Dollar gains have stalled, reinforcing a broader downtrend from mid-year peaks. Technical resistance in the low/mid 1.39s and support near 1.37 guide near-term trading expectations.