CAD firms into low 1.38s on broad USD weakness – Scotiabank

FXStreet Insights Team FXStreet

The Canadian Dollar (CAD) has picked more ground this morning to reach the low 1.38s in a reflection of the broader weakness in the US Dollar (USD) rather than anything else, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

USD/CAD breaks key support, signals further downside

"The CAD is trading a little above our estimated fair value (1.3865) for the first time since the start of the year but a sustained or deeper slide in risk appetite in the short run could serve to slow or halt CAD gains absent any other CAD-positive drivers."

"Yesterday’s Canadian data reports reflected slightly firmer than expected inflation and a marginally better than forecast (but still subdued and largely historic now) Business Outlook Survey for Q4 to help the CAD at the margin but a generally weaker USD is the primary story today."

"USD/CAD losses through noted support and bear trigger at 1.3855/60 target short-term losses to 1.3790/95. Recent price action reflects USD gains stalling against the combination of the 50– and 100-day MAs in the high 1.38s and low 1.39s and (today) falling back under the 200-day MA signal (1.3837). Sustained USD losses over the week will reaffirm strong USD resistance in the low 1.39 zone and tilt medium-term risks towards more weakness."

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.

EUR/USD remains bid above 1.1700

EUR/USD adds to Monday’s optimism and climbs to fresh 2026 tops near 1.1760 on turnaround Tuesday. The “Sell America” trade continues to weigh on the US Dollar as investors continue to assess developments around the US and Greenland.

GBP/USD targets 1.3500 amid extra USD selling

GBP/USD advances for the second day in a row, coming closer to 1.3500 the figure, or multi-day highs, on the back of the intense sell-off in the Greenback. Cable, in the meantime, seems to ignore the mixed results from the UK labour market, which appear to reinforce the case for extra BoE easing.

Gold extends its march north to $4,750

Gold builds on Monday's gains and hits at a new record high around $4,750 per troy ounce on Tuesday. Escalating geopolitical tensions and growing fears of deepening trade conflicts, alongside the broad-based selling pressure surrounding the US Dollar continue to fuel the precious metal’s rally.

Bitcoin extends decline as tensions around Greenland mount

Bitcoin price extends losses, trading below $91,000 at the time of writing on Tuesday amid escalating geopolitical tensions over Greenland. Investors are moving toward safe-haven assets, with Gold hitting fresh all-time highs, while BTC continues to nosedive.

Greenland tariffs: What happened, and how to position for the new Europe risk premium

Over the weekend, President Trump threatened a new round of tariffs on goods from Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland and the UK, with reporting flagging 10% from February 1 and a possible step-up later.

Crypto Today: Bitcoin, Ethereum and XRP extend correction as rising geopolitical tensions fade risky sentiment

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) prices are extending their losses on Tuesday as risk-on sentiment fades amid rising geopolitical tensions over Greenland.