As the trading week progresses, a clear short-term weakness in the Canadian dollar has started to emerge, as USD/CAD is showing a gain of nearly 0.3% in the session in favor of the US dollar.
USD/CAD Price Forecast: Prepares for fresh rally above 1.3700
USD/CAD Price Forecast: Neutral RSI and soft ADX signal lack of strong directional momentum
USD/CAD Price Forecast: Flat lines below 1.3700, while remaining below key 100-day EMA
Intraday bias in USD/CAD remains neutral for the moment. On the downside, below 1.3549 will extend the fall from 1.3965 to retest 1.3480 low.
FX futures positioning reveals a shifting landscape for the US dollar, yen and Canadian dollar, with notable changes across large speculators and asset managers. The latest COT report highlights falling USD exposure, a sharp unwind of yen shorts following suspected intervention, and a potential turning point for CAD positioning.
USD/CAD may face additional upside risks this week after Donald Trump rejected Iran's latest counterproposal for peace talks, posting on Truth Social late Sunday: “I don't like it - TOTALLY UNACCEPTABLE.” The remarks have seen risk sentiment sour in early Asian trade on Monday, adding to an already supportive backdrop for the pair following divergent economic data alongside improving technicals.
USD/CAD climbs after Canada jobs data surprises to the downside.
Recent trading sessions have not been particularly favorable for the Canadian dollar, as USD/CAD has posted a gain of more than 0.4% over the last five sessions in favor of the US dollar.
US dollar softens a bit with rates doing the same on Thursday, as peace in the Middle East continues to be the hope.
USD/CAD Price Forecast: Edges higher above 1.3600, but bearish bias persists below 100-day EMA
Mid-Week update for North-American Markets – Sentiment continues to rebound, but Markets are still not entirely convinced with the ongoing back-and-forth peace narratives, hence, key fundamental clearance is awaited. Taking a close look at NA index and currency performance combined with a USD/CAD intraday chart to spot what's next for American Markets.