The Canadian Dollar (CAD) remains range-bound but has made a little progress overnight, reflecting the generally softer US Dollar (USD) undertone, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

Technical signals remain neutral

"President Trump’s copper tariff news is liable to affect significant Canadian exports to the US, absent some sort of carve out being agreed in ongoing trade discussions. The near-term focus for the CAD will be on tomorrow’s labour market update but beyond the June data, reports suggest that significant government spending cutbacks will likely result in job losses next year and beyond."

"The CAD’s equilibrium estimate versus the USD is little changed at 1.3589 this morning, suggesting a mild USD overvaluation. USDCAD short-term technicals: Neutral—Brief USD gains above the 1.37 point yesterday stalled, according to the intraday charts but the short-term technical patterns do not reflect a lot of dynamism and near-term signals remain mixed."

"USD gains may extend a little more in the short run to test 1.3750/60 resistance. Support is 1.3630/40."