The CAD is holding in a tight range in the upper 1.36s, trading close to its fair value, as noted by Scotiabank's Analyst Team. The report indicates that recent swings in markets have prompted a rebound in the fair value estimate for the CAD, which now stands at 1.3679. The CAD's performance is influenced by steady crude prices and a rebound in precious metals.

CAD remains in tight range

"Recent swings in markets have promoted a rebound in our fair value estimate for the CAD to 1.3679—quite a difference from the sub-1.36s levels seen late last week."

"This leaves the CAD trading right on its equilibrium estimate this morning and perhaps points to a continuation of the narrow, sideways range trade in effect overnight."

"Spot edged up to the 1.37 area briefly yesterday, testing our theory that the high 1.36 zone should be a cap on USD rebounds."

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