Canadian Dollar Holds Range as US Yields Ease, Trade Risks Persist – Scotiabank

Scotiabank strategists Shaun Osborne and Eric Theoret note the Canadian Dollar (CAD) is trading little changed versus the US Dollar (USD). The pair holds in a range as slightly better fundamentals emerge: easing US yields and narrowing spreads. However, trade risks continue to cap directional moves, keeping the currency pair rangebound.

The analysts highlight that the improvement in yield dynamics provides some support for the CAD, but the broader backdrop of trade uncertainty prevents any sustained breakout. The market remains focused on the interplay between interest rate differentials and trade policy developments.