The Canadian Dollar (CAD) is showing resilience in the face of market fluctuations, according to Scotiabank’s chief FX strategist Shaun Osborne.
Stable at Support Levels
Osborne notes, “Solid gains in crude are boosting Canadian terms of trade, which is expected to have a positive impact on the currency. Our fair value estimate for USDCAD stands at 1.3650 currently.”
Despite these positive indicators, external factors such as the overall tone of the US dollar and market sentiment will continue to influence the CAD’s performance. Additionally, a large net short CAD position in IMM data could work in favor of the Canadian Dollar.
Currently, the CAD is holding steady around support levels in the low 1.37s, with resistance at 1.3765/75. While short-term momentum favors a weaker USD, the CAD’s inability to make significant progress may hinder further declines in the near future.
Expert Analysis and Market Trends
Overall, the Canadian Dollar is showing strength in the face of market uncertainties, with potential for further gains supported by favorable terms of trade and positioning. Investors should keep an eye on key resistance levels and external factors that could impact the CAD’s performance in the coming days.