CAD is trading steady to slightly lower - Scotiabank

The Canadian Dollar (CAD) is little changed--and a relative, if minor, underperformer versus many of its peers, Scotiabank's Chief FX Strategist Shaun Osborne notes.  

Canada and Mexico remain in communication on tariff strategy

"The CAD picked up solid ground yesterday amid hopes that Canada and Mexico could win tariff exemptions but that seems unlikely, at least for the moment. Bloomberg reporting yesterday evening did suggest, however, that the White House was still considering 'multiple proposals' for its tariff plan even at this very late stage, including a tiered and a 'customized' approach." 

"Canada and Mexico remain in communication on tariff strategy, which is a minor plus at least as both sides can act to exert pressure on Washington. PM Carney said Canada's response to new tariffs will be 'very deliberate'." 

"The USD is picking up a little ground in early trade and short-term price signals suggest the floor for spot is firming up at 1.4290/00 intraday. Yesterday's drop in the USD from the peak above 1.44 leaves a big, bearish outside range candle on the 6-hour chart and a bearish 'engulfing' line on the daily candle chart. That should mean firm resistance at 1.4410/20 intraday at least."