08:19 AM EDT, 07/11/2025 (MT Newswires) -- The Canadian dollar's (CAD or loonie) continued strength remains a function of the anti-USD (US dollar) trade

rather than any positive developments on the domestic front, said Scotiabank.

CAD gains have extended marginally overall, but the pace of strengthening appears to have slowed as the CAD has entered the lower end of the prior range that had prevailed between late 2022 and the Fall of 2024, noted the bank.

The bearish speculative CAD position has also been narrowed considerably, and there remains scope for continued support to the CAD on the way toward neutral, stated Scotiabank.

The options market is also bullish CAD, pricing a slight

premium for protection against strength.

The bank is bearish USDCAD (bullish CAD) and sees downside risk to its year-end 2026 target of 1.34.