CAD steady versus USD – Scotiabank

FXStreet Insights Team FXStreet

The Canadian Dollar (CAD) is little changed over the weekend vs the US Dollar (USD). It remains to be seen what Mark Carney’s win in the Liberal leadership election means for Canada and markets. The formal handover from Trudeau will take place in the next few days and Carney might then decide call an election, Scotiabank's Chief FX Strategist Shaun Osborne notes.

Technical signals remain somewhat mixed

"Or he could try and hold out to see if polls continue to shift in his favour. Meanwhile, President Trump will stick with tariffs on steel and aluminum, due Wednesday, Commerce Sec. Lutnick said at the weekend, as questions remain around the chaotic roll out of tariff action from the White House recently."

"The CAD may be able to stabilize in the short run. With 25% borders tariffs delayed until April at least, the USD is overvalued relative to the tariff regime that we have. Scope for CAD gains is not all that great; spreads have narrowed but remain significantly in the USD’s favour ahead of Wednesday’s BoC decision (when another 1/4-point trim to the overnight rate is likely)."

"A generally weaker USD undertone should help put a floor under the CAD for now. Technical signals remain somewhat mixed. Trend momentum continues to favour the USD but there is resistance to USD gains between1.4475/1.4525 while support for the USD remains 1.4250 and 1.4150."

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 looks offered below 1.1900

EUR/USD keeps its bearish tone unchanged ahead of the opening bell in Asia, returning to the sub-1.1900 region following a firmer tone in the US Dollar. Indeed, the pair reverses two consecutive daily gains amid steady caution ahead of Wednesday’s key US Nonfarm Payrolls release.

GBP/USD slips back to daily lows near 1.3640

GBP/USD drops to daily lows near 1.3640 as sellers push harder and the Greenback extends its rebound in the latter part of Tuesday’s session. Looking ahead, the combination of key US releases, including NFP and CPI, alongside important UK data, should keep the pound firmly in focus over the coming days.

Gold the battle of wills continues with bulls not ready to give up

Gold remains on the defensive and approaches the key $5,000 region per troy ounce on Tuesday, giving back part of its recent two day. The precious metal’s pullback unfolds against a firmer tone in the US Dollar, declining US Treasury yields and steady caution ahead of upcoming key US data releases.

Bitcoin's downtrend caused by ETF redemptions and AI rotation: Wintermute

Bitcoin's (BTC) fall from grace since the October 10 leverage flush has been spearheaded by sustained ETF outflows and a rotation into the AI narrative, according to Wintermute.

Dollar drops and stocks rally: The week of reckoning for US economic data

Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.

XRP holds $1.40 amid ETF inflows and stable derivatives market

Ripple trades under pressure, with immediate support at $1.40 holding at the time of writing on Tuesday. A recovery attempt from last week’s sell-off to $1.12 stalled at $1.54 on Friday, leading to limited price action between the current support and the resistance.