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fxJul 28, 2026, 1:24 PM

Scotiabank: limited upside for CAD against USD, USD/CAD near fair value at 1.4115

Scotiabank strategists see limited upside for the Canadian dollar against the US dollar, with USD/CAD trading near their fair-value estimate of 1.4115, constrained by wide short-term rate differentials.

USDCAD

Scotiabank strategists Shaun Osborne and Eric Theoret noted that USD/CAD is trading close to its estimated fair value of 1.4115. The Canadian dollar remains capped by wide short-term interest rate differentials versus its US counterpart, limiting any potential gains.

While the pair hovers near equilibrium, the strategists suggest that the CAD’s upside is limited in the near term. The persistent rate gap continues to weigh on the loonie, keeping USD/CAD supported around current levels.

Source: FXStreet Forex News