CAD can’t take advantage of firmer risk mood – Scotiabank

The Canadian Dollar (CAD) is little changed on the session, with spot holding in a familiar range near 1.40.

CAD remains anchored in range

“Improved risk appetite has not helped the CAD so far on the session but a firmer track in equities should help ease upside pressure on spot for now. Yesterday’s comments from BoC DG Vincent focused on Canada’s weak productivity growth trend but this is nothing new for the CAD.”

“US Ambassador Hoekstra said he expects US/Canada trade talks to resume, but was unsure when that would happen, and said that Canada will have to accept that the days duty-free trade are over.”

“Bearish USD price action Tuesday (outside range lower) was countered by yesterday’s solid rise in spot back to the mid-1.4000 area. USD/CAD has pressured the 1.4050/60 zone a number of times this week but has failed to extend. A push higher towards 1.4080/90 remains a risk and, above here, spot could retest 1.4140. Support is 1.4035/40 and 1.3970/80.”