CAD little changed amid firmer USD and MXN gains – Scotiabank

FXStreet Insights Team FXStreet

The Canadian Dollar (CAD) is trading little changed on the day. Along with a minor gain for the MXN and the generally firmer USD, there is a mild bid for North American FX across markets, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

Oil rebound supports slight lift in Canadian Dollar

"Oil prices are up a solid 1%+ and sentiment appears more bullish as tension in Iran grow and President Trump threatens to tariff countries trading with Tehran. The CAD’s recent performance has been dampened by the soft tone of energy prices and subdued terms of trade."

"It’s probably no coincidence that our fair value estimate for the CAD (1.3824) has strengthened for the first time in a week or so this morning as oil prices firm up. Spot formed an inside range session on the daily chart yesterday, suggesting the USD rebound that developed over the turn of the year has stalled."

"The net loss for the USD on Monday tilts technical risks mildly bearish at least. Intraday price action so far adds to the impression of a top/reversal developing above the 1.39 point where we now expect firm resistance. USD losses through 1.3860/70 may prompt a drop back to the low 1.38s over the next day or two."

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 alternates gains with losses around 1.1660

EUR/USD trades without clear direction on Tuesday, giving away some post-US CPI gains and receding toward the 1.1660 zone amid humble losses. The Greenback, in the meantime, manages to edge a tad higher as investors continue to digest the release of US CPI data in December.

GBP/USD comes under pressure near 1.3450

GBP/USD can’t quite find its footing and drifts back towards the lower end of its recent range, hovering around 1.3450 on Turnaround Tuesday. Cable has been stuck in a tight range, with the US Dollar keeping a modest bid after the release of the December US CPI figures.

Gold hits record highs past $4,630

Gold prices set aside the initial weakness and advances to all-time highs north of the $4,630 mark per troy ounce on Tuesday, adding to the ongoing positive streak. The precious metal picks up pace despite decent gains in the Greenback and rising US Treasury yields in the wake of the US CPI data release.

Privacy coins set to take the lead in 2026 as regulation accelerates demand for on-chain anonymity

The segment of privacy coins outperforms the broader cryptocurrency market, with a roughly 290% rise in 2025. The rising user count on the cryptocurrency tumbler Tornado Cash amid regulatory pushes, such as the 2025 GENIUS Act, reflects a surge in demand for privacy.

More pressure on the Federal Reserve emerges

News broke on Sunday night that the Federal Reserve received grand jury subpoenas from the Department of Justice on Friday, escalating the Trump administration's pressure on the nation's central bank.

XRP consolidates above $2.00 as on-chain and derivatives activity decline

Ripple (XRP) is trading sideways above support at $2.00 at the time of writing on Tuesday. Recovery has remained elusive despite steady inflows into spot Exchange Traded Funds (ETFs), which have cumulatively attracted $1.23 billion.