CAD stuck in Narrow range – Scotiabank

FXStreetDec 18, 2025 2:03 PM

View all comments（0）



The Canadian Dollar (CAD) is steady and rangebound, supported by bond market dynamics but capped by softer energy prices and equity volatility. USD/CAD trades slightly below fair value, with resistance near 1.38 and support in the low 1.37s keeping price action contained, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

USMCA comments limit USD upside

"The CAD is little changed on the session and remains generally rangebound. Trends in cash bond and swap spreads remain CAD-supportive but equity market volatility and softer energy prices are moderate headwinds for the CAD. The CAD’s fair value estimate has slipped a little as a result (1.3805 this morning), leaving the USD still trading at a slight discount to its estimated equilibrium."

"That may restrain the CAD somewhat and help sustain range trading for now. Bloomberg reported late yesterday that USTR Greer had indicated to US lawmakers in a briefing that he supports the US remaining in the USMCA but the president will keep his options open."

"The CAD has slipped into a sideways range trade after the early week drop to the low 1.37 area. The ceiling on funds looks fairly solid at 1.3790/00. A push above here may see the USD rebound extend to the mid/upper 1.38s. Support is 1.3725/30."

Disclaimer: The information provided on this website is for educational and informational purposes only and should not be considered financial or investment advice.

Comments (0)

Click the $ button, enter the symbol, and select to link a stock, ETF, or other ticker.

Commenting Guidelines

Recommended Articles

TSMC Second Quarter Net Profit Surges 77.4% to Record, AI Chip Demand Drives Results Above Estimates

TradingKey - On July 16, Eastern Time, TSMC (TSM) released its second-quarter 2026 financial results. The company's revenue for the quarter reached TWD 1.27 trillion, up 36.0% year-on-year and 12.0% quarter-on-quarter. In US dollar terms, revenue was USD 40.2 billion, representing a 33.7% year-on-year increase and reaching the upper end of the previous guidance range of USD 39.0 billion to USD 40.2 billion.

Micron (MU) Stock Crashes Below $910 as China’s CXMT Plans an $8.5B IPO; Is the DRAM Bull Cycle Cracking?

Micron fell 7% on July 15 as China’s CXMT announced an $8.5B IPO and the US government considered new HBM export restrictions. At $904, the 50-day EMA and $869 support are all that stand between bulls and a deeper drop. KeyBanc says buy it.

Today’s Market Recap: Unexpected PPI Drop Boosts Markets, Apple Hits All-Time High, AI Hardware Stocks Remain Under Pressure, Micron, SanDisk Slump

TradingKey - On July 15 ET, the three major U.S. stock indices closed higher for the second consecutive trading session. An unexpected decline in the U.S. June PPI further reinforced expectations of cooling inflation, while the start of the corporate earnings season continued to exceed market expect

Japan and South Korea Stocks Hammered at Open: KOSPI Tumbles 5%, SK Hynix Plunges 9%, Samsung, Kioxia and SoftBank Follow Lower

Japanese and South Korean stock markets opened sharply lower, with the KOSPI Index plunging 5% and the Nikkei 225 falling over 2%. SK Hynix led the decline with a drop of more than 9%, while Samsung Electronics, Kioxia, and SoftBank also followed the downward trend.

TSMC (TSM) Stock Forecast: June Revenue Up 68%, Q2 Earnings Tomorrow; Is $438 the Next Stop?

TradingKey - TSMC reports Q2 2026 earnings tomorrow, July 16. June revenue surged 68% year-on-year. Consensus: $40B revenue, $3.83 EPS. At $426 on trendline support, the key question is whether tomorrow’s print triggers a move back toward $438.

Featured Tools