Key Moments
- USD/CAD is trading near 1.3765 and has largely followed broader US dollar moves during the holiday period.
- Scotiabank highlights upcoming Canadian PMI, trade, and employment data as key drivers for the Canadian dollar.
- Technical resistance sits near 1.3810, while support is seen at 1.3750 and 1.3725 as momentum fades.
Market Overview
The US Dollar-to-Canadian Dollar exchange rate is starting to lose momentum. As a result, investors are shifting attention back to domestic Canadian factors.
Currently, USD/CAD trades around 1.3765. Recent price action has closely mirrored broader US dollar movements rather than Canada-specific news.
Cross Currency Levels
Meanwhile, major currency pairs against the Canadian dollar show modest movement in early trading.
| Pair | Rate | Move |
|---|---|---|
| Pound to Canadian Dollar (GBP/CAD) | 1.86585 | +0.1% |
| Euro to Canadian Dollar (EUR/CAD) | 1.61433 | +0.05% |
| US Dollar to Canadian Dollar (USD/CAD) | 1.37578 | -0.12% |
Focus Shifts Back to Canadian Data
According to Scotiabank FX analysts, the lack of recent Canada-specific headlines has kept the Loonie tied to US dollar trends. However, that dynamic may soon change.
In the coming days, Canada will release several key economic reports. These include PMI data, trade figures, and Friday’s employment numbers.
Notably, the Canadian dollar ended last year on firmer footing after a run of stronger-than-expected data. Therefore, analysts believe fresh upside is possible if upcoming releases remain resilient relative to the US.
Technical Picture for USD/CAD
From a technical perspective, Scotiabank views the short-term outlook for USD/CAD as neutral to slightly bearish.
Recent price action suggests the US dollar’s rebound from late-December lows may be losing steam. Intraday moves point to hesitation rather than renewed upside.
On the upside, the pair faces resistance near 1.3810. Conversely, initial support rests around 1.3750, followed by a deeper level near 1.3725.
Overall, USD/CAD could drift lower in the near term. This scenario becomes more likely if Canadian data gain influence and broader US dollar strength continues to fade.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
