The Canadian Dollar is holding steady against the US Dollar near the 1.40 level, which Scotiabank strategists Shaun Osborne and Eric Theoret identify as fair value, while showing modest strength versus other major currencies. The loonie’s performance comes as traders watch a critical technical threshold that could determine near-term direction.
Scotiabank analysts emphasize that sustained Canadian Dollar gains depend on breaking through resistance at 1.3970 against the greenback. The pair is currently trading at levels the bank considers fundamentally justified, suggesting limited immediate catalyst for dramatic moves without fresh macro developments. The CAD’s relative outperformance against other majors indicates some underlying resilience despite broader US Dollar strength in recent sessions.
Traders should monitor whether the loonie can maintain positioning around current levels as North American data releases approach. Any failure to breach the 1.3970 level could signal consolidation or renewed USD strength.
FXnCO Insight
Watch 1.3970 as the key breakout level for CAD strength; failure to clear this resistance likely keeps USD/CAD range-bound near fair value around 1.40.
Source: FXStreet