CAD lags commodity peers - Scotiabank

The Canadian Dollar (CAD) is lagging its commodity peers and trading little changed on the session. Tariff risks remain a constraint on the CAD's performance, Scotiabank's Chief FX Strategist Shaun Osborne notes.

CAD little changed

"This morning's Manufacturing and Wholesale Sales data are unlikely to move the CAD significantly. Markets are anticipating a 0.7% drop in November Wholesale Sales, in line with the estimate Statcan provided with the October report."

"The Liberal Party leadership battle appears to be whittling down to a handful of candidates--former Finance Minister Freeland and former BoC Governor Carney, who may announce his run for leader this week. The CAD's fair value estimate has improved to 1.4254 today."

"Firstly, solid resistance in the mid1.44 zone over the past month has blunted the USD's bull run and trimmed bull trend momentum. Secondly, a bearish outside range session developed Monday, with losses yesterday "confirming" the signal. Thirdly, spot losses are pressuring trend support off the September low. A clear push under 1.4340 may see USD losses pick up to test key shortterm support at 1.4280."