External broker reports(aggregated public sources), Scotiabank

Scotiabank

Scotiabank’s global foreign exchange strategy team provides in-depth regional insights and macro-economic analysis for G10 and advanced economies, Asia Pacific, and Latin America. Find technical and fundamental strategy reports focused on trade ideas, market risks, and the unfolding macro outlook. Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

External broker reports(aggregated public sources)

FX & Rates

<ul><li>The CAD is trading at its best level against the USD since last October and looks to be closing rapidly on the late-2024 low for spot around 1.34 that held just prior to the start of the USD’s rapid move up to its peak just under 1.48 in February.</li><li>The weak USD undertone explains much of the CAD’s recent improvement.</li><li>The soft USD trend reflects the erosion in “US exceptionalism” rooted in the softer US growth outlook and the relative underperformance in US risk assets this year amid tariff headwinds, investor concerns about weak US fiscal policy and, as a result of these factors, a reappraisal of investor exposure to the USD and USD-denominated assets.</li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

The CAD is trading at its best level against the USD since last October and looks to be closing rapidly on the late-2024 low for spot around 1.34 that held just prior to the start of the USD’s rapid move up to its peak just under 1.48 in February.The weak USD undertone explains much of the CAD’s recent improvement.The soft USD trend reflects the erosion in “US exceptionalism” rooted in the softer US growth outlook and the relative underperformance in US risk assets this year amid tariff headwinds, investor concerns about weak US fiscal policy and, as a result of these factors, a reappraisal of investor exposure to the USD and USD-denominated assets.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

FX Snapshot - CAD Gets a Modest Tailwind from Commodities