The US currency is currently trading near 1.3765 against the Canadian dollar, with recent price action largely reflecting broader US dollar trends over the holiday period.
FX analysts at Scotiabank note that the lack of Canada-specific news has left the loonie tracking US dollar movements. However, this dynamic could shift soon as the domestic data flow resumes.
Latest exchange rates:
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British pound to Canadian dollar (GBP/CAD): 1.86585 (+0.1%)
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Euro to Canadian dollar (EUR/CAD): 1.61433 (+0.05%)
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US dollar to Canadian dollar (USD/CAD): 1.37578 (−0.12%)
According to the bank, Canadian macro data releases are set to pick up in the coming days, including PMI updates, trade figures, and Friday’s employment report.
Scotiabank analysts argue that the Canadian dollar ended last year on a firmer footing after a run of better-than-expected data. If upcoming releases again point to relative resilience in Canada’s economy compared with the US, the loonie could strengthen further.
From a technical perspective, the short-term outlook for USD/CAD is seen as neutral with a bearish bias.
Recent price action suggests that the US dollar’s rebound from late-December lows is losing steam, with intraday movements signaling hesitation rather than a clear continuation higher.
Analysts highlight 1.3810 as a key resistance level that would need to be broken to revive upside momentum. Support is seen near 1.3750 and 1.3725.
Scotiabank believes that in the near term the USD/CAD pair could continue to drift lower if Canadian data regain prominence and the broader US dollar rally continues to fade.
