CAD is significantly undervalued – Scotiabank

Source Fxstreet

The Canadian Dollar (CAD) retains a soft undertone ahead of Canadian Retail Sales at 8.30ET, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret note.

CAD is soft on the day

"The data might bring some good news for the CAD, with sales expected to rise a solid 1.5% in the June month, a hair lighter than the flash estimate of a 1.6% gain released with the soft May data. The CAD also remains quite significantly undervalued, according to our estimated equilibrium (1.3711 today)."

"Factors driving fair value have weakened slightly over the week but spot is now well over one standard deviation above fair value, with the misalignment nearing the extremes seen in the spring around the tariff uncertainty. PM Carney said he had a 'productive' call with President Trump on trade and security yesterday. They agreed to speak again shortly. No other details emerged."

"Spot gains extended a little further overnight, reflecting the solid technical uptrend on the short-term charts and the firmer tone in the USD that developed after spot pushed above resistance around 1.3880 earlier this week. USD gains to new, short-term cycle highs this week pave the way for a push on to the 1.4000/25 area potentially. There is minor resistance on the daily chart at 1.3925. Support is 1.3875/80 now and 1.3830/50."

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Bitcoin CME gaps at $35,000, $27,000 and $21,000, which one gets filled first?Prioritize filling the $27,000 gap and even try higher.
Author  FXStreet
Aug 22, 2023
Prioritize filling the $27,000 gap and even try higher.
placeholder
Bitcoin ETF Inflows For 2025 Now Outpace 2024, Data ShowsUS Bitcoin spot exchange-traded funds (ETFs) have seen more inflows this year so far compared to the same point in 2024, according to data.
Author  Bitcoinist
Jul 16, Wed
US Bitcoin spot exchange-traded funds (ETFs) have seen more inflows this year so far compared to the same point in 2024, according to data.
placeholder
Silver Price Forecast: XAG/USD slips toward $38.00 as Fed rate cut odds easeSilver price (XAG/USD) edges lower after registering gains in the previous session, trading around $38.10 per troy ounce during the Asian hours on Friday.
Author  FXStreet
Aug 22, Fri
Silver price (XAG/USD) edges lower after registering gains in the previous session, trading around $38.10 per troy ounce during the Asian hours on Friday.
placeholder
Gold slips as reduced Fed rate cut bets underpin USD ahead of Powell's Jackson Hole speechGold (XAU/USD) remains under some selling pressure for the second straight day on Friday, though it manages to hold above the overnight swing low.
Author  FXStreet
Aug 22, Fri
Gold (XAU/USD) remains under some selling pressure for the second straight day on Friday, though it manages to hold above the overnight swing low.
placeholder
Forex Today: US Dollar extends weekly uptrend ahead of Powell speech at Jackson HoleThe US Dollar (USD) stays resilient against its rivals early Friday after posting decisive gains on Thursday.
Author  FXStreet
Aug 22, Fri
The US Dollar (USD) stays resilient against its rivals early Friday after posting decisive gains on Thursday.
Related Instrument
goTop
quote