CAD gains modestly versus USD – Scotiabank

FXStreet Insights Team FXStreet

The Canadian Dollar (CAD) is up modestly on the softer US Dollar (USD) on the session but is mixed against the core majors, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret note.

CAD trades mixed on crosses

"Moderate CAD gains are backed by positive risk sentiment and somewhat narrower spreads holding near the slimmest yield advantage for the USD since the end of last year. And while our estimated fair value for USD/CAD has nudged a little higher today (1.3615), the USD’s divergence with its equilibrium estimate is growing."

"That may constrain the dollar’s ability to strengthen and may encourage spot to nudge a little lower at least. Meanwhile, messaging from Canadian officials continues to indicate that hopes that negotiations could get all US tariffs removed are set to be disappointed."

"The USD’s push higher from the early July low remains intact but the 50-day MA is developing into a short-term block on funds and intraday price signals lean a little soft. The mid/upper-1.37 area is a zone of congestion for the USD ahead of the intraday peak just under 1.38 seen on June 23rd. The USD still has quite a bit of work ahead if it is to strengthen much further. USD support is 1.3705/10 ahead of 1.3670/80."

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 keeps the rangebound trade near 1.1850

EUR/USD is still under pressure, drifting back towards the 1.1850 area as Monday’s session draws to a close. The modest decline in spot comes as the US Dollar picks up a bit of support, while thin liquidity and muted volatility, thanks to the US market holiday, are exaggerating price swings and keeping trading conditions choppy.

GBP/USD flirts with daily lows near 1.3630

GBP/USD has quickly given back Friday’s solid gains, turning lower at the start of the week and drifting back towards the 1.3630 area. The focus now shifts squarely to Tuesday’s UK labour market report, which is likely to keep the quid firmly in the spotlight and could set the tone for Cable’s next move.

Gold battle around $5,000 continues

Gold is giving back part of Friday’s sharp rebound, deflating below the key $5,000 mark per troy ounce as the new week gets underway. Modest gains in the US Dollar are keeping the metal in check, while thin trading conditions, due to the Presidents Day holiday in the US, are adding to the choppy and hesitant tone across markets.

AI Crypto Update: Bittensor eyes breakout as AI tokens falter

The artificial intelligence (AI) cryptocurrency segment is witnessing heightened volatility, with top tokens such as Near Protocol (NEAR) struggling to gain traction amid the persistent decline in January and February.

The week ahead: Key inflation readings and why the AI trade could be overdone

It is likely to be a quiet start to the week, with US markets closed on Monday for Presidents Day. European markets are higher across the board and gold is clinging to the $5,000 level after the tamer than expected CPI report in the US reduced haven flows to precious metals.

XRP steadies in narrow range as fund inflows, futures interest rise

Ripple is trading in a narrow range between $1.45 (immediate support) and $1.50 (resistance) at the time of writing on Monday. The remittance token extended its recovery last week, peaking at $1.67 on Sunday from the weekly open at $1.43.