#canadian dollar

The post Canadian Dollar steady as trade surplus, Fed outlook cap USD/CAD appeared on BitcoinEthereumNews.com. USD/CAD trades around 1.4205 on Tuesday at the time of writing, virtually unchanged on the day, as investors balance encouraging Canadian economic data against a US Dollar (USD) that remains supported by monetary policy expectations and ongoing geopolitical tensions. Canada released stronger-than-expected trade figures. Merchandise exports rose 0.9% in May, while imports edged down 0.2%, allowing the trade surplus to widen to CAD$4.24B from an upwardly revised CAD$3.41B in April. This marks Canada’s third consecutive monthly trade surplus. Meanwhile, the Ivey Purchasing Managers Index (PMI) eased to 59.7 from 61.3 but remained firmly in expansion territory, signalling that economic activity continues to grow. Despite the upbeat domestic data, the Canadian Dollar (CAD) struggles to gain traction, although higher Oil prices are providing some support. West Texas Intermediate (WT

The post Canadian Dollar: Consolidation with stretched USD positioning – Scotiabank appeared on BitcoinEthereumNews.com. Scotiabank strategists Shaun Osborne and Eric Theoret note the Canadian Dollar (CAD) is effectively flat versus the US Dollar (USD) and trading close to their fair value estimate around 1.4158. They expect the recent deterioration in spreads to stabilize, easing downside pressure on the CAD. Short-term, USD/CAD is consolidating with an overbought USD, facing resistance near 1.4250/00 and support at 1.4150 and 1.4075/80. Fair value and range parameters “The CAD is effectively flat against the USD and outperforming, if only marginally, most of its core peers as a result. Factors driving the CAD are relatively steady; our fair value model for the CAD indicates equilibrium of 1.4158, slightly weaker for the CAD than yesterday, suggesting that the CAD is about where it should be from a fundamental point of view.” “More broadly, we think the deterioration in spreads seen s