Scotiabank analysts signal potential CAD upside against the USD, supported by a hawkish Bank of Canada policy stance and a critical technical threshold at 1.40.
The Canadian Dollar is showing resilience against the US Dollar, bolstered by a modestly hawkish monetary policy stance from the Bank of Canada. Scotiabank strategists Shaun Osborne and Eric Theoret highlight that while the pair remains relatively flat, the CAD is demonstrating underlying strength compared to other commodity-linked currencies.
The CAD is currently flat against the USD but shows relative strength against other commodity currencies, supported by the Bank of Canada's hawkish policy.
Scotiabank strategists identify a break below 1.40 as a key indicator that would favor further CAD strength.
The Canadian Dollar remains flat against the US Dollar while showing strength against other commodity-linked currencies. Scotiabank strategists attribute this resilience to a modestly hawkish interest rate hike from the Bank of Canada, suggesting potential for further gains if the pair breaks below the 1.40 support level.
Scotiabank strategists maintain a bearish outlook for the pair, noting that a break below the 1.40 level would likely favor further Canadian Dollar strength.