Canadian Dollar: Further gains eye 1.35–1.37 against US Dollar - Scotiabank

FXStreetAug 18, 2026 2:06 PM

View all comments（0）



Scotiabank strategists Shaun Osborne and Eric Theoret report USD/CAD trading near equilibrium around 1.3870, with Canadian Dollar (CAD) fundamentals supported by narrower front-end spreads and firm crude prices. They see investors relatively unconcerned by looming US tariff deadlines. Technically, they describe a strong bearish trend, expecting selling interest near 1.39 and highlighting downside risks towards 1.3817 and potentially the 1.35–1.37 range.

CAD supported as USDCAD trend bearish

"The CAD is shrugging off softer global stocks and the mild rebound in the USD to trade little changed on the day. It is a marginal outperformer within the G10 group as a result."

"Fundamental CAD drivers remain supportive, via narrower front-end spreads mainly although firmer crude prices will also help at the margin. This is reflected in a modest decline in our fair value estimate for spot which has slipped to 1.3843 today."

"The fact that the CAD is trading close to its estimated equilibrium suggests investors are not overly concerned by tomorrow’s tariff deadline which may see 50% tariffs levied on a small range of Canadian exports. Talks are ongoing but remain bogged down on autos, reports suggest. PM Carney indicated that he expected to speak with President Trump before the deadline."

"Bearish—Spot’s rebound off the 200-day MA at 1.3848 yesterday may disrupt the developing technical bear trend in USD/CAD in the short run. Underlying trend dynamics remain strong and mild USD rebounds are liable to draw firm selling interest towards the 1.39 area."

"We think the bearish alignment across intraday, daily and weekly DMI oscillators keeps the primary trend lower and geared towards a test of 1.3817 (61.8% retracement of the May/June USD rise). The risk of a deeper slide to the 1.35/1.37 range is rising. We spot firm resistance at 1.4000/25."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)

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

SpaceX Stock Price Prediction: Why Analysts Are Bearish to $75 as SPCX Returns to Near $150?

TradingKey - SpaceX (SPCX) shares recently reclaimed their IPO price, closing at $146.23 on August 17. Phillip Securities analyst Glenn Thum recently reiterated a "Sell" rating on SpaceX with a target price of $75. Based on the current share price of $146, this forecast implies a potential downside of approximately 50% for SPCX.

Micron Stock Price Forecast: Can MU Stock Keep Rising as Memory Shortage May Extend to 2027 and Shares Target $1,000?

TradingKey - As of August 17 Eastern Time, shares of Micron (MU) rose 4.13% on the day to close at $1,011.75, reclaiming the $1,000 mark. Since falling to a low of $737.88 on July 29, Micron's stock has rebounded by approximately 37%, though it still has roughly 20% upside potential to reach its all-time high of $1,254.80 set on June 25.

Why Nike Stock Hit a 12-Year Low, Down 78% From Its 2021 Peak

TradingKey - Nike (NKE), which once swept global markets with its "Just Do It" slogan and Air Jordan series, is currently experiencing a prolonged slump rarely seen since going public. On August 17, Nike shares closed at $39.09, down about 4% for the day after touching an intraday low of $38.86, hitting a new low in nearly 12 years.

Japan, South Korea Stocks Diverge in Early Trade as Kospi Rises Over 2%, SK Hynix Jumps Over 6%, Nikkei 225 Drops 0.8%

TradingKey - On August 18, Japanese and South Korean stock markets diverged in morning trading. South Korea's KOSPI Index (KOSPI) opened higher and extended its gain to 2.2%, standing at 7,131.40 points, while Japan's Nikkei 225 Index (JPN225) came under pressure, falling 0.81% to 68,658.17 points.

US Stocks Close: Dow Drops 270 Points, SOX Bucks Trend to Gain 1.64%; Memory and Optical Communication Stocks Lead Gains; Micron Rises 4% to Retake $1,000 Mark

The US-Iran ceasefire agreement expired on Monday as negotiations reached a deadlock, while the 30-year US Treasury yield hit a new high since 2007, both of which weighed on US equities. All three major indexes fell, while AI hardware stocks bucked the trend to strengthen, with memory and optical communication stocks leading the gains. At the close, the Dow Jones Industrial Average dropped 0.51% to 53,459.78; the Nasdaq Composite Index fell 0.32% to 26,644.91; and the S&P 500 Index lost 0.52% to 7,745.06.

Featured Tools