1639 ET - The Canadian dollar is enjoying a steady rebound, says economics team at Bank of Nova Scotia. The firm expects USDCAD to end 2026 at C$1.33, from its current C$1.36 level. USDCAD's recent peak was near C$1.40 in early April. Underpinning Scotiabank's USDCAD forecast is an expectation for three 25 bp interest-rate increases from the Bank of Canada. The firm says BOC opened the door to rate hikes in this week's decision, citing elevated oil prices. Scotiabank adds it is optimistic about a resolution in U.S.-Canada trade talks, toward USMCA renewal. Canada, as a net exporter of crude oil, is importing higher incomes through higher prices, "with trickle down effects into domestic incomes and more resulting spending," Scotiabank says. (paul.vieira@wsj.com; @paulvieira)

(END) Dow Jones Newswires

April 30, 2026 16:40 ET (20:40 GMT)

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