Scotiabank strategists Shaun Osborne and Eric Theoret highlight that the Canadian Dollar (CAD) is steady to slightly firmer versus the Dollar despite weak risk appetite, helped by a modest bid for commodity currencies. They point to a historically strong April for CAD since the 1970s and note USD/CAD has broken above its 200-day moving average, keeping focus on further upside toward the low 1.39s.

Seasonal tailwinds but chart stays bullish

"The CAD is steady to marginally firmer against the USD on the session, reflecting a modest bid for other commodity currencies on the day despite weak risk appetite. With March more or less in the books, the CAD might be able to look forward to the coming month."

"Seasonal trends since the early 1970s reflect a distinct bump in the CAD’s performance in April—a solidly positive month for the currency against the USD. More recent trends have been a little more nuanced but the tendency for the CAD to strengthen against the USD remains."

"Spot gains through the 200-day MA (1.3806) this week and bullish short-term trend momentum signals keep the technical focus on the topside for funds towards the low 1.39s. Support is 1.3790/00 and 1.3750/60. "

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