USD/CAD's rebound from 1.3549 extended higher last week. The rise is seen as the third leg of the pattern from 1.3480.
The US Dollar to Canadian Dollar (USD/CAD) exchange rate strengthened to 1.3789, extending this month's recovery after softer-than-expected Canadian inflation data dampened expectations for further Bank of Canada tightening. Scotiabank notes that the Canadian Dollar has underperformed recently as front-end yields and rate spreads.
USD/CAD is attempting to stabilize above a major breakout zone after pushing through key resistance late last week. The move marks an important shift in the near-term technical structure, with the weekly opening range now forming just above former resistance turned support.
Mid-Week update for North-American Markets – After a long, prosperous peace trading period, Markets are starting to get afraid again from Iran and Kevin Warsh news. 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.
USD/CAD Price Forecast: Needs to sustain above 50% Fibo retracement to extend rally
Canada just delivered an inflation undershoot that should have seen USD/CAD launch like a rocket, especially with the big dollar ripping higher against the other major currencies on Tuesday. Instead, the pair printed what looks like a topping signal.
The trading week has not been entirely favorable for the Canadian dollar in the short term, as USD/CAD has shown upward strength over the last three sessions, with a gain of around 0.3%. This indicates that US dollar strength is becoming increasingly present in the pair's recent price action.
Canadian Dollar slips as Iran peace hopes cap Oil; USD/CAD climbs to 1.3750 on firmer USD
USD/CAD Price Forecast: 50% Fibo retracement near 1.3755 acts as key barrier
Intraday analysis covering USDCAD pushing higher, EURGBP, and US 30, focusing on short-term price action, key support and resistance levels, and intraday market momentum across major instruments. USDCAD pushing higher The greenback remains bullish against its neighbour after hitting another higher high.
The interest rate differential continues to be the biggest thing in most pairs at the moment.
Michael Boutros, FOREX.com Senior Market Analyst, analyzes USD/CAD as the pair tests a critical resistance zone following a sharp rebound from yearly lows. He breaks down the technical confluence driving this move, key levels to watch for continuation or reversal, and how shifting Federal Reserve expectations after hotter inflation data are influencing currency markets.