CAD rebound versus USD steadies in low 1.37s – Scotiabank

FXStreet Insights Team FXStreet

The Canadian Dollar (CAD) is marginally higher on the session but is lagging its G-10 commodity peers somewhat, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret note.

Spot losses may steady around 1.3728

"The CAD is up 0.1% on the day so far while the AUD and NZD are both posting gains of around 0.4% and sit near the top of the major currency overnight performance table amid firmer global risk appetite (and strength in regional FX following a firmer than expected CNY fix from the PBoC earlier).

"Crude prices have steadied today but sharp losses this week may be a headwind for the CAD while the recent narrowing in US/Canada spreads has also stalled. USD/CAD fair value has edged a little lower to 1.3618 today but trade uncertainty may see the CAD struggle to close the gap on its equilibrium estimate unless the USD sell-off accelerates. The July Ivey PMI (reported at 53.3 in June) is released at 10ET."

"USD/CAD has given back about half of its late July rally and spot is steadying around the 50% Fibonacci retracement support at 1.3728 in early trade. Early price action suggests spot losses may steady around this point in the short run. Friday’s big, USD-bearish reversal in price action suggests more downside movement remains possible, if not likely, however. Intraday resistance is 1.3775/00."

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 retreats from weekly high vs firmer USD as focus shifts to BoE, US data

The GBP/USD pair struggles to capitalize on the previous day's strong move up to the weekly high and drifts lower during the Asian session on Thursday. Spot prices currently trade around mid-1.3300s, down over 0.10% for the day, and, for now, seem to have stalled the recovery move from a nearly four-week low, touched on Tuesday.

EUR/USD edges lower to near 1.1450 as Fed holds rates steady, traders await Eurozone and German GDP

The EUR/USD pair trades with mild losses around 1.1465 during the early Asian session on Thursday. The US Dollar edges higher against the Euro on a hawkish Federal Reserve rate hold. Traders brace for the preliminary readings of the Gross Domestic Product for the second quarter from Germany and the Eurozone.

Gold eyes $4,000 and US GDP amid fresh US-Iran tensions

Gold faces rejection once again above $4,100 in the aftermath of the Fed verdict-led volatility. The US Dollar pauses post-FOMC sell-off as the US launches fresh strikes on Iran. A daily closing above $4,100 and the RSI above 50 are needed to negate Gold’s bearish outlook.

WTI falls below $83.00 despite hostilities in the Middle East

West Texas Intermediate, the US crude oil benchmark, is trading around $82.80 during the early Asian trading hours on Thursday. WTI falls amid some profit-taking despite escalating conflicts in the Middle East. Traders book some profits following the US Federal Reserve interest rate decision.

Fed review: Reversing course (?)

At face value, the FOMC's 9-3 split decision hold was exactly in line with the expectations we laid out in our Fed preview - a divided hold, 22 July. We also named the three dissenters - Hammack, Logan and Kashkari - as the most likely hawks to support rapid tightening.

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.