The Canadian Dollar (CAD) was little changed during the session, with the spot rate holding in a familiar range near 1.40.
The Canadian dollar remains anchored in the range
“Improving risk appetite has not helped the loonie so far during the session, but a strong trajectory in stocks should help ease the upward pressure for now. Yesterday’s comments from Bank of Canada Director General Vincent focused on the weak productivity growth trend in Canada, but this is nothing new for the loonie.”
“U.S. Ambassador Hoekstra said he expects trade talks between the U.S. and Canada to resume, but was unsure when that would happen, and said Canada will have to accept that the days of duty-free trade are over.”
“Tuesday’s bearish USD price action (outside the lower band) was countered by yesterday’s strong rise in the spot to the mid-1.4000 area. USD/CAD has pressed the 1.4050/60 area several times this week but has failed to extend. A rise towards the 1.4080/90 area remains a risk, and above here, the spot price may retest the 1.4140 area. Support is 1.4035/40 and 1.3970/80.”
