CAD little changed overnight – Scotiabank

The Canadian Dollar (CAD) is little changed. Spot nudged up to the 1.44 area in overnight trade but remains close to yesterday’s closing levels as markets settle into a holding pattern ahead of US tariffs and the global response to them, Scotiabank's Chief FX Strategist Shaun Osborne notes. 

CAD trades narrowly around 1.44

"Slower global trade and growth is sure to result which will undercut the appeal of commodity FX—although a lot of bad news is arguably priced into the CAD already at these levels. Fair Value continues to sit a fair way below spot (1.4135) by our estimate but approaching anything close to that sort of level seems unlikely for now."

"After a solid rise in the USD yesterday, spot gains have stalled around the 1.44 point. Intraday price signals suggest a high level of indecision at current levels. Long “upper shadows” on the 6-hour candlesticks suggest better selling pressure above the figure but only limited downside movement in the USD has resulted." 

"More, tight range trading around the figure seems likely this morning. Above 1.400 targets an extension to 1.4450, potentially 1.4520. Support is 1.4330."