CAD softer amid weak risk appetite

Weak risk appetite pressured the Canadian Dollar (CAD) lower this morning, though its losses are more moderate compared to other high beta and commodity currencies, according to Scotiabank Chief FX Strategists Shaun Osborne and Eric Theoret.

Comments from BoC and Government Fiscal Plans

"BoC Governor Macklem’s remarks yesterday afternoon stayed on the messaging delivered after last week’s policy decision. Monetary policy is somewhat 'stimulative' but there were limits on what the BoC can do to offset the headwinds from trade turmoil."

Finance Minister Champagne is expected to present a budget after 4 PM, described as "no surprises," with key fiscal plans already known.

"There will be more spending on defence, housing and infrastructure projects on the one hand and spending cuts on the other in response to the economic challenges thrown up by US trade policy."

Trade Policy and Legal Developments

The US Supreme Court is set to hear arguments regarding the legality of President Trump's emergency powers to impose tariffs on Wednesday, with a decision likely only by early next year (February).

Canadian trade data are delayed due to the US government shutdown, as both countries depend on reciprocal import data for balance calculations.

Technical Levels for USD/CAD

Spot gains are approaching the mid-October high of 1.4080, an important resistance point before potential extension to the mid-1.41 range and retracement resistance at 1.4160.

Intraday support is at 1.4040–1.4050 for the USD. For USDCAD losses to deepen, levels need to fall below 1.40.

Summary: The Canadian Dollar is showing moderate weakness amid cautious market sentiment and trade uncertainties, while fiscal and legal developments continue to influence near-term dynamics.

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FXStreet — 2025-11-04