The Canadian dollar (CAD) is extending its recent profits and quoting in new marginal maximums, reaching levels not seen since the beginning of October, says the head of Strategy of FX of Scotiabank, Shaun Osborne.
CAD movements are backed by narrower differentials and higher oil prices
“The strength of the CAD is fundamentally driven, reflecting an important change in the perspective of the relative policy of the central banks, initially due to the reliability change of the BOC and those responsible for policies towards a neutral posture last week, followed by the last softness in the US CPI which has led to a more moderate reevaluation of the expectations of the Fed.”
“The latest gains in oil are providing an additional impulse to the CAD. Our fair value estimation for the USD/CAD has fallen to a new minimum, and is currently in 1,3681. We would also like to highlight the latest forecast update of Scotiabank, in which we see the USD/CAD closing 2025 in 1.34 and 2026 in 1.28. The technical aspects of the USD/CAD are bass. new minimums of several months and heads around 1.36. “
“Momentum indicators are bassists and the RSI approaches the overall threshold by 30, which justifies a certain degree of caution. We continue to highlight the absence of important support levels before the minimum of September in 1,3420. The short -term support is expected to be between 1,3600 and 1,3580. The short -term resistance is now expected above 1,3700.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
