CAD holds range on the day – Scotiabank

FXStreet Insights Team FXStreet

The Canadian Dollar (CAD) is little changed on the day and continues to range trade as markets await developments on the trade front, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

Spreads may help steady spot amid trade uncertainty

"The Canadian trade team appears resigned to the fact that tariff-free trade is unlikely to result from talks., Commerce Sec. Lutnick commented over the weekend that much of US/Canada/Mexico trade was tarifffree but the US will use tariffs as leverage to open Canadian markets. Tariff uncertainty may be closing the window on the potential for the BoC to cut rates much further."

"Canadian short rates have risen some 40bps since the April low, more than double the rise in US 2Y yields, resulting in some spread compression that should be modestly CADsupportive at least. The Bank of Canada’s Q2 Business Outlook Survey (10.30ET) may shed more light on Canadian businesses’ response to current challenges."

"While USD/CAD has crept above trend resistance off the February high on the weekly chart, the CAD is reluctant to cede gains which took spot back to the last Fibonacci retracement support (1.3744) ahead of a full retreat to 1.3420. I still rather think the USD is facing stiff resistance in the 1.3750/00 zone. Support is 1.3700/05 and 1.3650."

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 flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.