PrintCanadian Dollar Faces Headwinds, Scotiabank Keeps Constructive CAD View
BY MT Newswires | ECONOMIC | 09/26/25 07:05 AM EDT07:05 AM EDT, 09/26/2025 (MT Newswires) -- The Canadian dollar's (CAD or loonie) recent performance has been challenged by shifting fundamentals and a renewed dovishness from the Bank of Canada, said Scotiabank.
The bank's outlook remains constructive, as Scotiabank still anticipates less easing from the BoC relative to the Federal Reserve and, as such, looks to support from interest rate differentials.
In terms of price action, USD/CAD's Q3 reveals range-bound movement, stated the bank. Longer-term suggests considerable resistance around 1.40, and Scotiabank expects the level to limit any upside.
The bank's bearish USD/CAD, bullish CAD, view remains intact and Scotiabank holds a Q4 2025 target
of 1.34.
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