Improvement in short-term spreads, generally weaker USD needed to give CAD more obvious lift – Scotiabank

CAD trades modestly firmer near recent range highs on the USD. Economists at Scotiabank analyze Loonie’s outlook.

Positive tilt in the direction of factors driving the CAD

A steadier USD overall, steady stocks, somewhat firmer crude oil and marginal gains in commodity prices broadly suggest a slightly more positive tilt in the direction of factors driving the CAD. 

But some additional improvement in short-term spreads and/or a generally weaker USD is needed to give the CAD a more obvious lift at this point.