The Canadian Dollar (CAD) was little changed against the generally stronger USD overnight—which is no mean feat considering the amount of attention Canada is getting from the US president-elect, Scotiabank’s Chief FX Strategist Shaun Osborne notes.

CAD slips after holding steady overnight

“Markets perhaps don’t quite know what to make of the political vacuum at home and Trump’s apparent wish to co-opt Canada as the US’ 51st state. That may all be deflection, considering perhaps some more obvious foreign policy challenges for the incoming administration. Renewed tariff threats from Trump are weighing more obviously on the CAD as our session gets underway.”

“USD/CAD’s dithering around the 1.4335 technical breakdown point leaves the CAD’s position on the charts weaker now than at the start of the week when a mild rebound looked possible. A reversion to range trading around the 1.44 point looks more likely now, with near-term downside risk for USD/CAD alleviated. Resistance is 1.4465.”