CAD steady just below Tuesday’s multimonth high – Scotiabank

The Canadian Dollar (CAD) is soft, trading marginally lower from Tuesday’s multi-month recovery high, Scotiabank’s Chief FX Strategist Shaun Osborne notes.

Near-term resistance lies above 1.3880

“The meeting between President Trump and PM Carney offered a constructive tone but no indications of an easing in trade tensions as President Trump stated that there was nothing that PM Carney could say that would convince him to lift the tariffs.”

“Fundamentally, the CAD continues to trade just above its FV (USD/CAD spot trading below FV at 1.3824). Domestically, the next major risk event is the release of employment data (April) on Friday. The Bank of Canada also releases its Financial Stability Report on Thursday.”

“USD/CAD’s trend remains bearish as it extends its descending channel from mid-April. The slowing in momentum is notable and is delivering positive divergence, with the RSI failing to confirm Tuesday’s fresh multimonth low in spot. We look to fresh support around 1.3720 and see near-term resistance above 1.3880.”