CAD slips further as USD rebound dominates – Scotiabank
By FXStreet Insights Team
Date Published: 8 Jan 2026 | Date Modified: 8 Jan 2026
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The Canadian Dollar (CAD) has leaked steadily lower so far this week, extending its post-Christmas slide to the upper 1.38s, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.
The Canadian Dollar (CAD) has leaked steadily lower so far this week, extending its post-Christmas slide to the upper 1.38s, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.
USD/CAD tests upper 1.38s resistance zone
"Soft crude trends (up a little today, however) and soft risk appetite overnight account for the dip in the CAD’s form, along with the broader rebound in the USD. Other factors (spreads) remain more CAD-supportive but spot is trading a little further above (our) fair value estimate of 1.3826 this morning."
"Spot gains have extended a bit more than we expected at the start of the week to reach noted resistance in the upper 1.38s (50% retracement of the Nov/Dec USD decline, a major low from late Oct). USD gains should stall here in the short run at least."
"The USD advance has cleared the 200-day MA, however, and trend momentum signals are shifting USD-bullish on the short-term studies. Another push higher that establishes the USD above 1.39 may see USD extend to 1.3950/00. Support is 1.3810/20."
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