The Canadian Dollar underperforms despite risk appetite recovery. Economists at Scotiabank expect the Loonie to struggle to post gains.

Choppy range trading between 1.35-1.38 for now

“The improvement in risk appetite is a modest tailwind for the CAD versus the USD while US-Canada yield spreads across the curve are less onerous for the CAD following this week’s turmoil, they remain a drag.”

“Compelling reasons to push the CAD higher are scant and that likely means more, choppy range trading between 1.35-1.38 for now.”