USD/CAD Eases to 1.4140 as CAD Sell-Off Bottoms

USD/CAD has slipped toward 1.4140 in mid-July after peaking near 1.4248 in late June, marking a 14-month low for the Canadian dollar. The pair surged nearly 5% from early May amid hotter April CPI at 2.8%, soft retail sales, widening Fed-BoC rate differentials, and softer oil prices that drove speculative net shorts on CAD to a yearly high of 146,792 contracts. Banks including Scotiabank and Commerzbank now flag the move as overextended, with improving Canadian labor data, narrowing yield spreads, and stabilizing fundamentals supporting a modest CAD rebound and tests of key support near 1.4160.