CAD holds range on the day - Scotiabank

The Canadian Dollar (CAD) is trading slightly more firmly on the session, helped by an improvement in risk appetite that has lifted high beta FX generally, Scotiabank's Chief FX Strategist Shaun Osborne notes. 

Markets await tariff developments

"Broad range trading is likely to persist in the short run as markets await developments on tariffs and the new Canadian government's approach to these challenges. The CAD continues to trade well below my fair value estimate--equilibrium is holding around the 1.41 level into the end of the week--which should at least help curb scope for further CAD losses for now, all else equal."

"Spot losses from the early week peak around 1.4520 continue to suggest (via a bearish 'evening star' candle pattern on the daily chart) that a short-term top in funds is in place at least. The USD is a reluctant loser at the moment, however, and so more, flattish range trading is likely in the short run. Support is 1.4350."