USD/CAD Stays Range-Bound Near 1.41 as Fed and BoC Decisions Loom

Scotiabank strategists Shaun Osborne and Eric Theoret point to limited directional momentum in USD/CAD, which remains anchored near the 1.41 mark. According to their latest note, the Canadian dollar’s performance is being driven primarily by front-end interest rate differentials between the Federal Reserve and the Bank of Canada.

While stronger oil prices have provided a supportive backdrop for the commodity-linked loonie, that tailwind has not been enough to overcome the influence of yield spreads. The pair’s stability suggests traders are awaiting fresh monetary policy signals from both central banks.

The range-bound dynamic keeps the pair in a holding pattern ahead of upcoming Fed and BoC communications, leaving the near-term outlook dependent on any shift in rate expectations.