CAD steady but fails to gain significantly - Scotiabank

The Canadian Dollar (CAD) is little changed against the stronger US Dollar (USD) on the session so far. Another, apparent tariff reprieve has not boosted the CAD significantly, Scotiabank's Chief FX Strategist Shaun Osborne notes.

CAD fails to gain significantly on latest tariff reprieve

"But was not clear from the president's comments yesterday exactly what tariffs he was referring to when he said Canadian and Mexican tariffs would be implemented on April 2. Officials later indicated that March 4 remains a deadline for border tariffs. Implicitly, other (reciprocal) tariffs could also follow in April. Canadian diplomacy remains fully engaged with US counterparts, suggesting officials are taking nothing for granted."

"The CAD's move off yesterday's intraday low against the USD near 1.4370 signaled a short-term top (at least) in the USD rebound. The CAD has not been able to recover much ground, however, and continues to hold around the 40-day MA (1.4336) and near yesterday's closing level."

"The USD has developed some bullish momentum on the short-term studies which will keep directional risks tilted towards more gains and limit the CAD's ability to recover in the short run. Support is 1.4300 and 1.4250. Resistance is 1.4400 and 1.4475."