CAD edges fractionally higher – Scotiabank

$CAD edges fractionally higher – Scotiabank$

FXStreet Insights Team FXStreet

The Canadian Dollar (CAD) continues to lean quite hard on the 1.40 zone but, even with the USD slipping broadly on the day, cannot secure a clear push under the figure zone, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

CAD can’t secure a clear push under 1.40 area

"Spot is all but unchanged on the session yet the CAD should be able to leverage further softness in the USD to push more decisively below the 1.40 area. The BoC’s Summary of deliberations for the October 29th policy decision reinforced messaging from policymakers that there was little more they could do to help the economy adjust to the structural challenges brought about by US trade policy."

"Rates are likely 'close to the limit' of their ability to support the economy, policymakers agreed, a view which was clearly reflected in Governor Macklem’s post-meeting remarks."

"Spot is just about holding on to support in the 1.3990/00 zone but, with five successive days of net USD losses on the daily chart and last week's rejection of the mid-1.41 area still prominent on the weekly chart, there are some potentially CAD-positive technical trends developing. A sustained push under 1.3990/00 support should see the USD slip back to the 1.3900/50 zone at least in the short run."

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

GBP/USD slips toward 1.3350 after soft UK CPI data

GBP/USD erases recovery gains and slips toward 1.3350 in the European session on Wednesday. The UK annual Consumer Price Index (CPI) inflation cooled to 2.6% in June against the market forecast of 2.7%, tempering the British Pound's rebound from weekly troughs. Traders also assess the ongoing Mideast tensions amid a pause in the US Dollar uptrend.

EUR/USD holds above 1.1400 amid US Dollar retreat

EUR/USD holds positive ground above 1.1400 in European trading on Wednesday, helped by hawkish ECB expectations and a broad US Dollar retreat. However, persisting Middle East tensions and surging Oil prices keep the pair's upside elusive.

Gold holds gains above $4,100 undaunted by risk-off markets

Gold extends gains for the fourth consecutive day, standing comfortably above $4,100, unfazed by the risk-off market amid rising tensions in Iran and higher Oil prices. The pair has rallied nearly 2.5% so far this week and is on track for its best weekly performance in more than three months.

Cardano: Short-term recovery lacks retail support

Cardano price edges lower after the 50-day Exponential Moving Average at $1.770 capped two consecutive days of recovery seen earlier this week. ADA futures point to waning retail traction as Open Interest and trading volume decline amid elevated long liquidations. The technical outlook for ADA is bearish, as momentum remains subdued below a resistance trendline near $0.1782.

Chip stocks are more volatile than Oil

I continue to start the day by looking at these two charts: US crude & Kospi. The former is extending gains, trading above $86 per barrel for WTI and $92 per barrel for Brent, while the Kospi is up more than 4.5%, led higher by Korean chipmakers following a similar jump in VanEck's Semiconductor ETF yesterday.

US Dollar mid-year outlook: Exceptional currency, exceptional risks?

The US Dollar enters the second half of 2026 in a markedly different position from a year ago. The King currency has recovered, reflecting persistent US inflation, changing expectations for Fed policy, geopolitical tensions and renewed demand for defensive assets.