CAD holds steady near Friday’s close against USD – Scotiabank

FXStreet Insights Team FXStreet

The Canadian Dollar (CAD) remains near Friday’s closing level versus the US Dollar (USD), trading just below its estimated fair value of 1.3798. While short-term consolidation in USD losses is possible, the underlying trend favors further CAD strength, with resistance on moderate USD rebounds expected around 1.3850–1.3875, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

USD/CAD slightly below fair value amid mild CAD stretch

"The CAD is holding close to Friday’s closing rate versus the USD. Spot continues to trade a little below our estimated fair value (1.3798) but the stretch in the CAD’s valuation is mild and there remains ample leeway for fundamentally-driven strength to extend."

"We noted last week that a USD/CAD close below 1.3769 (61.8% retracement of the USD’s H2 rally) should indicate more USD losses towards 1.35/1.36 in the coming weeks. It was close but the CAD just failed to hold the necessary gain through 1.3769 into the weekend, however."

"And with the USD veering into oversold territory on the short-term oscillators, some consolidation in recent USD losses may be a risk in the short run. Given the strength of the underlying trend lower on the charts, we think scope for USD gains is limited, however. We expect firm resistance on moderate USD rebounds to the 1.3850/75 zone."

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 climbs to daily highs near 1.1820

EUR/USD now picks up pace and advances to the area of daily peaks north of the 1.1800 barrier at the end of the week. The pair’s decent move higher comes against the backdrop of a generalised lack of direction in the FX galaxy and the mild offered stance in the US Dollar.

GBP/USD trims losses, retests 1.3460

After briefly challenging its key 200-day SMA near 1.3440, GBP/USD now manages to regain some balance and revisit the 1.3460 zone on Friday. Cable’s pullback comes as the selling pressure on the Greenback gathers traction, reigniting some recovery in the risk-linked space.

Gold flirts with four-week highs past $5,200

Gold extends its rebound, climbing for a third consecutive session and pushing back above the $5,200 mark per troy ounce on Friday. The move higher continues to draw support from lingering geopolitical tensions and the ongoing uncertainty surrounding US trade policy, both of which are keeping safe-haven demand firmly in play.

Bitcoin, Ethereum and Ripple consolidate with short-term cautious bullish bias

Bitcoin, Ethereum and Ripple are consolidating near key technical areas on Friday, showing mild signs of stabilization after recent volatility. BTC holds above $67,000 despite mild losses so far this week, while ETH hovers around $2,000 after a rejection near its upper consolidation boundary.

Breaking: US and Israel attack Iran, risk aversion to sweep global markets

Early Saturday, United States (US) President Donald Trump announced that the US had begun “major combat operations” in Iran, following Israel’s pre-emptive missile attacks against Tehran.

Starknet unveils strkBTC, shielded Bitcoin transactions on Ethereum Layer 2

Starknet, the Ethereum Layer 2 network developed by StarkWare, today announced strkBTC, a wrapped Bitcoin asset that introduces optional shielding while preserving full DeFi composability.