The Canadian Dollar is resuming its upward momentum against the US Dollar, with USD/CAD trading near fair value around 1.38 according to Scotiabank strategists Shaun Osborne and Eric Theoret. The currency pair is hovering close to fundamental equilibrium, suggesting the loonie has found stable ground after recent volatility. The strategists’ analysis indicates that current price levels reflect appropriate economic fundamentals between the two North American economies.
This fair value positioning comes as traders reassess Canadian economic resilience and commodity market dynamics that typically drive CAD performance. The loonie’s strength suggests markets are pricing in balanced risk between Canadian and US economic outlooks at current levels. For currency traders and forex brokers, the 1.38 handle represents a critical technical and fundamental threshold where CAD appears neither overvalued nor undervalued relative to its US counterpart.
FXnCO Insight
Traders should watch for breakouts above or below the 1.38 fair value zone, as any sustained move could signal shifting economic fundamentals and present directional trading opportunities in USD/CAD.
Source: FXStreet