Scotiabank strategists highlight CAD support from tighter front-end spreads and stable crude prices near 1.3870.
The Canadian Dollar (CAD) is poised for further gains against the US Dollar (USD), targeting a 1.35–1.37 range. USD/CAD currently trades near equilibrium at 1.3870, supported by narrower front-end spreads and firm crude prices.
Recent fundamentals for the CAD remain robust, with investors largely unfazed by potential US tariffs. The pair’s stability reflects broader market confidence in the Canadian currency’s outlook amid favorable economic conditions.
No immediate market reaction was specified, but the technical and fundamental backdrop suggests sustained CAD strength in the near term.