Canadian Dollar: Steady near year-to-date ceiling against USD – Scotiabank

Source Fxstreet

Scotiabank’s Analyst Team describes USD/CAD as little changed near the top of its year-to-date range, with conditions favouring at least a minor Canadian Dollar rebound as risk sentiment improves. They see spot trading roughly two big figures above their fair value estimate and note tomorrow’s Bank of Canada decision as the main event risk for the Canadian Dollar.

Range highs face consolidation

"The CAD is little changed. Conditions appear to be favourable for a minor rebound at least, with the USD drifting and risk sentiment leaning positive."

"Spot gains to retest the top of the YTD range for funds do not appear to have drawn out any significant CAD bargain-hunting even as spot remains close to two big figures above our fair value estimate (1.3758 this morning)."

"We continue to think 1.39+ levels offer some medium-term value for CAD buyers, however."

"Neutral—With a near pinpoint retest of the late March high (at 1.3967) achieved, the CAD may be able to steady for now. Short-term price signals lean modestly USD bearish but broader dynamics remain bullish."

"Stronger evidence to a top/reversal is needed to firm up the range ceiling that has held since the start of the year. Minor support is 1.3925 ahead of 1.3870. "

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Asian Currencies Steady Near Lows as Yen Hovering Near 160 Triggers Intervention WatchAsian markets stabilized following a sharp selloff, balanced by a fragile Middle East ceasefire and strong U.S. economic data that fueled expectations of prolonged high Federal Reserve interest rates.
Author  Mitrade Team
6 Month 04 Day Thu
Asian markets stabilized following a sharp selloff, balanced by a fragile Middle East ceasefire and strong U.S. economic data that fueled expectations of prolonged high Federal Reserve interest rates.
placeholder
Will the Tech Rally Continue? The Technical Verdict on the NASDAQ 100 Riding a massive 32% post-earnings wave, the Nasdaq-100 is showing its first signs of exhaustion. We break down crucial exit and entry rules for long positions this week.
Author  Mitrade Team
6 Month 05 Day Fri
Riding a massive 32% post-earnings wave, the Nasdaq-100 is showing its first signs of exhaustion. We break down crucial exit and entry rules for long positions this week.
placeholder
Gold Slumps as Dwindling Iran Peace Hopes Reignite Fed Rate ApprehensionGold headed for its worst week since May as collapsed Middle East peace talks stoked inflation fears, driving dollar inflows ahead of crucial U.S. nonfarm payrolls data.
Author  Mitrade Team
6 Month 05 Day Fri
Gold headed for its worst week since May as collapsed Middle East peace talks stoked inflation fears, driving dollar inflows ahead of crucial U.S. nonfarm payrolls data.
placeholder
WTI Crude Slips Below $90 as Easing Mideast Tensions and Supply Dynamics Flash Bearish Signals WTI crude breached the critical $90 threshold as fading Middle East risks and technical breakdowns signaled a bearish pivot, leaving oil vulnerable to further downside toward $85.
Author  Mitrade Team
9 hours ago
WTI crude breached the critical $90 threshold as fading Middle East risks and technical breakdowns signaled a bearish pivot, leaving oil vulnerable to further downside toward $85.
placeholder
Markets on a Wire: Imminent US Inflation Data Threatens to Lock In Fed Rate Hikes Imminent CPI and PPI data threaten to lock in a hawkish Federal Reserve rate hike cycle, leaving gold, tech equities, and Bitcoin highly vulnerable to a programmatic sell-off.
Author  Mitrade Team
8 hours ago
Imminent CPI and PPI data threaten to lock in a hawkish Federal Reserve rate hike cycle, leaving gold, tech equities, and Bitcoin highly vulnerable to a programmatic sell-off.
Related Instrument
goTop
quote