On Thursday, USD/CAD sees some selling pressure during the day due to a weaker US Dollar. The Canadian Dollar (CAD) supports the Bank of Canada’s (BoC) decision to maintain its hawkish stance, contributing to the pair’s downward movement. Despite a rebound in US bond yields and a softer risk tone, the USD struggles to recover significantly, keeping the pair near the 1.3500 psychological level, slightly above a one-week low reached earlier.

The Federal Reserve’s (Fed) stance on interest rate cuts presents mixed signals. Chair Jerome Powell indicates a potential rate cut this year but emphasises the need for evidence of inflation falling to the 2% target. Conversely, Minneapolis Fed President Neel Kashkari downplays speculations of aggressive policy easing, hinting at possibly fewer rate cuts amid more robust US macro data.

Meanwhile, the CAD benefits from the BoC’s hawkish stance, while subdued crude oil prices offer little support. The rebound in US bond yields and a softer equity market tone act as a tailwind for the USD, limiting significant downside for the USD/CAD pair.

Investors focus on Powell’s second day of testimony before the Senate Banking Committee. Additionally, economic data releases, including US Weekly Initial Jobless Claims and Trade Balance figures from both the US and Canada, along with US bond yields and broader risk sentiment, will impact USD demand and provide further direction for the USD/CAD pair.


Today last price1.3505
Today Daily Change-0.0012
Today Daily Change %-0.09
Today daily open1.3517
Daily SMA201.3518
Daily SMA501.3456
Daily SMA1001.3536
Daily SMA2001.3477
Previous Daily High1.36
Previous Daily Low1.3499
Previous Weekly High1.3606
Previous Weekly Low1.3484
Previous Monthly High1.3606
Previous Monthly Low1.3366
Daily Fibonacci 38.2%1.3538
Daily Fibonacci 61.8%1.3561
Daily Pivot Point S11.3478
Daily Pivot Point S21.3438
Daily Pivot Point S31.3376
Daily Pivot Point R11.3579
Daily Pivot Point R21.364
Daily Pivot Point R31.368

Related Post