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fxAug 18, 2026, 2:07 PM

Scotiabank sees USD/CAD downside toward 1.35-1.37

Scotiabank strategists argue the Canadian dollar is poised for more gains, with USD/CAD likely to move from near 1.3870 toward the 1.35-1.37 area.

USDCAD

Strategists Shaun Osborne and Eric Theoret note that USD/CAD is trading near equilibrium around 1.3870. They see scope for further Canadian dollar strength, targeting 1.35-1.37 against the US dollar.

The Canadian dollar is supported by narrower front-end spreads and firm crude oil prices. According to Scotiabank, investors appear relatively unconcerned by looming US tariff risks for now.

This outlook implies a lower USD/CAD path from current levels if the supportive CAD fundamentals persist.

Source: FXStreet Forex News