Scotiabank strategists highlight 1.3970 as a key support level for USD/CAD amid stable US-Canada spreads and limited CAD-specific drivers.
The Canadian Dollar trades near fair value at 1.4006 against the US Dollar, with minimal movement as external factors dominate. USD/CAD remains driven by US-Canada yield spreads and broader risk sentiment, while CAD-specific news is scarce.
Technical analysis suggests a bearish bias for the USD, with a break below 1.3970/80 needed to extend declines. Resistance is seen near 1.41, while recent data surprises have slightly favored the CAD. Trade concerns linger ahead of an August 19 tariff deadline.
The pair’s stability reflects balanced positioning, though downside momentum could accelerate if support levels fail.