Little changed that day – Scotiabank

The Canadian dollar (CAD) is little changed against the USD on the day, with the spot holding close to Monday’s close in the low 1.35 area, notes Shaun Osborne, chief FX strategist at Scotiabank.

CAD is near fair value on wider US/Can spreads

“CAD’s push towards the low 1.34 area last week has steadily reversed after yield spreads widened in favor of the USD. CAD generally remains in the 1.34 to mid-1.36s range at this point. Spot is trading close to its estimated fair value (1.3546) today.

“USD’s steady gains since last week’s low have recouped about half of USDCAD’s September decline from the 1.3647 peak. Momentum is leaning towards the USD but looks relatively weak. More USD gains could be possible in the near term through the upper 1.35 area, but the broader sideways spot trade below 1.3650 is likely to remain intact for now.”