The Canadian Dollar (CAD) has fallen against the USD for 10 consecutive days, marking its longest losing streak since 2017, according to Bloomberg. Scotiabank’s Chief FX Strategist, Shaun Osborne, notes that the CAD appears oversold, and the USD rally may soon pause or consolidate.
Ahead of Canada’s CPI release, expectations are for headline inflation to decline by 0.3% in September, with core inflation measures showing modest increases. Osborne suggests this data may prompt the Bank of Canada to hold off on aggressive rate cuts.
Despite some signs of USD overbought conditions, technical indicators remain bullish, with USD/CAD resistance levels at 1.3850 and 1.3950. Any CAD recovery would need to break through 1.3600 to signal strength.


