CAD: Edges lower amid broader USD gains – Scotiabank

💡 DMK Insight

The CAD’s recent softness against a stronger USD signals potential volatility ahead. With the CAD’s fair value estimate nudging up, traders should be cautious. This could indicate a temporary adjustment rather than a trend reversal. If the USD continues to strengthen, we might see the CAD testing key support levels. Watch for any significant economic data releases from Canada or the U.S. that could impact this dynamic. A break below recent lows could trigger further selling pressure, while a rebound could offer a buying opportunity for those looking to capitalize on short-term fluctuations. Keep an eye on the USD/CAD pair for immediate trading signals, especially if it approaches critical resistance or support levels in the coming days.