Scotiabank strategists Shaun Osborne and Eric Theoret report that the Euro (EUR) is demonstrating resilience around the 1.1576 level, supported by Germany’s August ZEW survey, which showed the Expectations component rising to 34, surpassing both the consensus forecast of 30 and July’s reading of 26.3 [1]. The strategists note that while the Euro is little changed on the session, technical indicators remain bullish, with strong intraday and daily momentum. They maintain a near-term objective of a break through the 1.1625/50 range, which could open the door for gains toward the mid-1.17s, with support identified at 1.1515/25 [1].
On the Canadian Dollar (CAD), Scotiabank observes that USD/CAD is trading near equilibrium at approximately 1.3870, with the CAD benefiting from narrower front-end spreads and firm crude prices [2]. The strategists highlight that the CAD is a marginal outperformer within the G10 group, and that investors appear relatively unconcerned by an impending US tariff deadline that could see 50% tariffs imposed on a small range of Canadian exports. Talks regarding the tariffs remain stalled on the issue of autos, and PM Carney is expected to speak with President Trump before the deadline [2].
Technically, the USD/CAD pair is described as being in a strong bearish trend, with selling interest expected near the 1.39 level. The strategists see downside risks toward 1.3817 and potentially the 1.35–1.37 range, with firm resistance at 1.4000/25. The bearish alignment across intraday, daily, and weekly DMI oscillators is cited as keeping the primary trend lower [2].
Both reports emphasize the importance of technical momentum and fundamental drivers—such as economic sentiment in the Eurozone and interest rate spreads and commodity prices for the Canadian Dollar—in shaping near-term currency movements. No specific market reactions or analyst opinions beyond those of the Scotiabank strategists are mentioned in the sources.
CONCLUSION
Scotiabank strategists see continued bullish momentum for the Euro, targeting gains toward the mid-1.17s, while the Canadian Dollar is supported by favorable fundamentals and technicals, with downside risks for USD/CAD toward the 1.35–1.37 range. Both currencies are seen as resilient in the current environment, with technical and fundamental factors guiding near-term expectations.