# USD/CAD Rally Above 1.38 Looks “Overdone”: Scotiabank Canadian Dollar Forecast

> Scotiabank says the USD/CAD rally above 1.38 looks extended after climbing from early-May lows near 1.3550. The bank attributes recent loonie weakness mainly to narrowing US-Canada yield spreads and reduced expectations for further Bank of Canada tightening after softer inflation.

- Date: 2026-05-27 · published 2026-05-27T12:00:00.000Z
- Category: macro · region Canada · magnitude low
- Page: https://feedsoft.ai/events/19488-usd-cad-rally-above-1-38-looks-overdone-scotiabank-canadian-dollar-forecast
- Commodities: [Canadian Dollar (CAD per USD)](https://feedsoft.ai/c/USDCAD.md)

## Why it matters

Rate-spread-driven loonie weakness raises the USD cost of Canadian canola and barley exports, a small influence on feed import pricing.

## Read by commodity

- USDCAD: bullish ▲

## Sources

- exchangerates.org.uk: https://www.exchangerates.org.uk/news/46038/2026-05-27-usd-cad-rally-above-1-38-looks-overdone-scotiabank-canadian-dollar-forecast.html

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.