Select Language

CAD slips, strays from fair value - Scotiabank

Breaking news

CAD slips, strays from fair value - Scotiabank

  • X
  • facebook
  • LINE
  • RSS

  • X
  • facebook
  • LINE
  • RSS
update 2025.08.05 20:49
CAD slips, strays from fair value - Scotiabank

update 2025.08.05 20:49

The Canadian Dollar (CAD) retains a soft undertone but trading patterns are closely aligned with the core majors for the most part, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

US/ Canada spreads narrow

"USD/CAD's push back to the 1.38 area leaves spot trading quite significantly above its estimated fair value (1.3614) once again, with the CAD finding no support from typical positives, such as the pro-risk mood or, more particularly, the compression in short-term US/Canada cash bond/swap spreads."

"The 2Y yield gap is trading near the 100bps mark and edged briefly below that point Friday/Monday to the narrowest yield advantage for the USD since last November. Narrower spreads should at least help limit upside movement in the USD in the near-term even as trade worries linger. Canada releases trade data at 8.30ET."

"USD/CAD technical signals are mixed. The USD traded firmly in late July and extended gains through 1.3750/00 where I had expected firmer resistance. But USD gains look stretched on the daily oscillator and price action Friday formed a bearish outside range reversal. That should mean a firm cap on the USD for now at 1.3880 and a return perhaps to the sideways trading range (1.3550/1.3750 roughly) that prevailed through June/July."


Date

Created

 : 2025.08.05

Update

Last updated

 : 2025.08.05

Related articles


Show more

FXStreet

Financial media

arrow
FXStreet

FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.

Was this article helpful?

We hope you find this article useful. Any comments or suggestions will be greatly appreciated.  
We are also looking for writers with extensive experience in forex and crypto to join us.

please contact us at [email protected].

Thank you for your feedback.
Thank you for your feedback.

Most viewed

Donald Trump announces he will have a "majority" on the Fed

United States (US) President Donald Trump stepped in it on Tuesday, declaring that there would soon be a majority of rate-cut voters on the Federal Reserve's (Fed) interest rate setting voting body, the Federal Open Market Committee (FOMC).
New
update2025.08.27 05:46

BoC's Macklem reaffirms dropping inflation target amid trade policy uncertainty

Bank of Canada (BoC) Governor Tiff Macklem noted that the BoC will not be revisiting its 2% inflation targets for the foreseeable future, citing uncertainty around trade and ever-changing tariff policies from the United States (US).
New
update2025.08.27 04:12

Canadian Dollar gains ground on Greenback weakness

The Canadian Dollar (CAD) caught a slight bid on Tuesday, gaining some ground against the softening US Dollar (USD) heading into a quiet midweek.
New
update2025.08.27 03:41

EUR/USD threads water below 1.1650

The EUR/USD pair trades within a limited range on Tuesday, holding above the 1.1600 mark but unable to extend gains beyond an intraday peak in the 1.1660 region. The pair is hovering around 1.630 in the American afternoon, lacking a clear bias.
New
update2025.08.27 03:32

Forex Today: Australian inflation comes to the fore

The US Dollar (USD) reversed its prior gains and came under some modest downside pressure on Tuesday, as market participants shifted their attention to another bout of the Trump-Fed spat ahead of the release of key inflation data toward the end of the week.
New
update2025.08.27 03:19

Dollar weakness pressures USD/JPY as Fed jitters grow

Following Monday's decent gains, USD/JPY faces renewed downside pressure on turnaround Tuesday, coming all the way down to retest the 147.00 region, where some decent contention seems to have turned up.
New
update2025.08.27 03:16

Gold holds just below $3,400 as Fed drama hits dollar

Gold stayed firm just under $3,400 per troy ounce on Tuesday, lifted by renewed weakness in the US Dollar (USD) and lingering doubts over the Fed's independence after President Trump's unprecedented attempt to fire Governor Lisa Cook.
New
update2025.08.27 03:00

Dow Jones Industrial Average treads water as stocks await meaningful news

The Dow Jones Industrial Average (DJIA) spun a tight circle on Tuesday, holding steady near familiar levels as investors await meaningful data or news headlines to get the machine chugging again.
New
update2025.08.27 02:13

AUD/USD nears recent peak above 0.6500 amid a better market mood

Generally encouraging United States data revived optimism among market players.
New
update2025.08.27 02:05

Donald Trump vows new tariffs, more jobs, and lower Crude Oil prices

United States (US) President Donald Trump struck a mix of new and familiar talking points during a cabinet meeting on Tuesday.
New
update2025.08.27 01:44

Disclaimer:arw

All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.

The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.

  • Facebook
  • Twitter
  • LINE

Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy

I agree
share
Share
Cancel