- The US dollar is gaining strength against the Canadian dollar in today’s trading session.
- This shift is largely due to interest rate announcements from both the Bank of Canada and the Federal Reserve.
- In the end, the spotlight is likely to remain on the US, though it’s clear that traders are paying attention to the Federal Reserve’s decisions. While Canadians certainly have their viewpoints, the trend is that the US dollar often influences movements across various currencies.
Trade Contract
Reflecting back, if Canada had been the first country to engage in trade talks with the US six months ago, it might have changed things. Recently, we’ve seen similar situations developing in the UK and the EU, and maybe even in a few Asian countries, including China. Yet, Canada seems to have opted out of negotiating with the US, which could lead to significant consequences. Unless the current tariff issues change rapidly, the Canadian dollar might be in for a tough time.
From a technical standpoint, if the price surpasses the 1.38 mark, it could potentially reach 1.40, which might lead to a long-term holding strategy. Conversely, if it dips below 1.35, I think the Canadian dollar could gain strength against the US dollar. However, given the heated demand in the US bond market today, the US dollar appears to have robust momentum, possibly sustaining its rise.
Interested in a forex forecast for USD/CAD? I’m currently checking out Canada’s most regulated forex broker.
