CAD chops around the 1.42 zone - Scotiabank

The Canadian Dollar (CAD) is little changed on the session as spot continues to pivot around 1.42, Scotiabank's Chief FX Strategist Shaun Osborne notes. 

CAD little changed on the day

"President Trump's auto tariff threat has not fazed the CAD to any significant degree--it was not clear from his comments whether specific countries would be targeted or whether it would apply to all auto imports. Just add it to the list of other, overlapping threats that the president has leveled at Canada recently which may or may not eventually be imposed." 

"The minor rebound in the USD from yesterday's session low leaves spot trading close to our fair value estimate (1.4238) this morning. More range trading around the 1.42 point is likely, I think, for now while investors await developments. There are no Canadian data reports today."

"Spot gains through European trade may nudge risks towards a little more USD strength in the short run but the short-term pattern of trade looks pretty flat. Short-term oscillators remain bearish (for the USD) so scope for gains is likely limited to the 1.4260/80 area for now. Support is 1.4175/80."