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USD/CAD: BEARS PUSH TOWARDS 1.3725 – SCOTIABANK

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The Canadian Dollar (CAD) has made a bit more progress overnight to reflect the bid for risk assets amid calmer market conditions, Scotiabank’s chief FX strategist Shaun Osborne notes.

A break below 1.3725 is possible

“My fair value estimate continues to track a little lower than spot (1.3723) this morning, suggesting that there is some additional scope for the CAD to improve. For now, however, it is important to keep in mind that the primary driver of the CAD’s performance is the risk backdrop. The BoC releases the summary of its July policy decision discussion at 13.30ET.

“The report is unlikely to have any major impact on the CAD unless there are signs that the CAD’s recent slide registered any sort of concern for policymakers.”


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