Created
: 2025.09.29
2025.09.29 20:46
The Canadian Dollar (CAD) has picked up a little ground in quiet trade to move back through the low 1.39s but its broader underperformance is extending and the chances of a significant rebound on its own merits look limited at this point, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.
"Tomorrow's Canadian bank holiday will likely keep activity on the quiet side in the early part of the week before the focus shifts to the US jobs report. We highlighted the seasonal headwinds facing the CAD as we move into Q4 in Friday's Weekly note and it bears repeating that the CAD typically underperforms though the latter part of the year."
"The recent exception was 2023, however, when soft US data late in the year prompted markets to start thinking about easier Fed policy (prematurely, as it turned out), driving the USD generally lower. There are some signs from the shortterm charts that USD gains peaked and reversed late last week but drop in funds from the high has been minimal, with losses steadying around the 1.3925 (August high) point that served as minor resistance on the way up."
"The CAD needs to recover a little more ground and push back through 1.3880 I think to show some stronger technical chops at this point--if only from a short-term point of view. If the USD holds in the low 1.39s, spot risks remain geared to a retest of the 1.40 area."
Created
: 2025.09.29
Last updated
: 2025.09.29
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.
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].
Disclaimer:
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.
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