The CAD is trading defensively against the strengthening USD. Economists at Scotiabank expect the loonie to continue at the mercy of the current US dollar’s force.

The risk of a push on to 1.2950/1.30 has risen

“The CAD slide looks excessive from our point of view, given the strength of the domestic economy, the BoC’s own hawkish intent, and yield premiums over the USD for the CAD but that will not help the CAD resist the USD’s general advance for the moment.”

“With spot already reaching the 1.2865 area (61.8% Fib of the May/ Jun USD decline), the risk of a push on to 1.2950/1.30 has risen.”

“USD support is 1.2815/25.”