- The USD/CAD pair reaches one-week highs on the appearance of new dollar purchases.
- Aggressively, Fed expectations and a softer risk tone continue to benefit the dollar.
- Rising oil prices prop up the Loonie and cap gains ahead of FOMC minutes.
The pair USD/CAD it attracts new buying on Wednesday and hits a 1.5-week high of around 1.3500 during the first half of the European session.
A combination of support factors pushes the US dollar (USD) to a new two-month high, which, in turn, acts as a tailwind for the USD/CAD pair. Recent hawkish comments from a number of influential Federal Reserve (Fed) officials reaffirmed market expectations that the US central bank will keep interest rates higher for longer. In fact, markets have begun to price in the possibility of another 25 basis point rise in June. This, coupled with a weaker risk tone overall, further benefits the dollar as a safe haven.
Market sentiment remains fragile amid worrying signs of slowing global economic growth, especially in China, and US debt ceiling issues. Indeed, data from China last week indicated that the world’s second largest economy underperformed in April. In addition, representatives of President Joe Biden and congressional Republicans ended another round of debt ceiling talks without reaching an agreement to raise the government’s borrowing limit. This tempers investor appetite for riskier assets and prompts some safe-haven flows.
It remains to be seen, however, whether the bulls can capitalize on this move amid a further rise in crude oil prices, which tends to benefit the commodity-linked Loonie. Indeed, US West Texas Intermediate (WTI) rose nearly 2% intraday to a three-week high after Saudi Arabia’s energy minister warned that short sellers should beware of pain, fueling speculation about further OPEC+ production cuts. This, in turn, warrants some caution before placing further bullish bets on the USD/CAD pair and positioning for further gains.
Market participants may also prefer to stay on the sidelines ahead of the release of the FOMC meeting minutes, which will be released later in the US session. The Minutes will be closely scrutinized for clues as to the future path of the Fed’s rate hikes, which, in turn, will influence near-term demand for the dollar and help investors determine the next leg of a Directional move for the USD/CAD pair. In addition, the dynamics of oil prices could contribute to generate short-term trading opportunities around the main currencies.
technical levels
USD/CAD
Overview | |
---|---|
Last price today | 1.3553 |
Today I change daily | 0.0049 |
today’s daily variation | 0.36 |
today’s daily opening | 1.3504 |
Trends | |
---|---|
daily SMA20 | 1.3504 |
daily SMA50 | 1.3532 |
daily SMA100 | 1.3508 |
daily SMA200 | 1.3484 |
levels | |
---|---|
previous daily high | 1.3549 |
previous daily low | 1.3485 |
Previous Weekly High | 1.3568 |
previous weekly low | 1.3404 |
Previous Monthly High | 1.3668 |
Previous monthly minimum | 1.3301 |
Fibonacci daily 38.2 | 1.3509 |
Fibonacci 61.8% daily | 1.3524 |
Daily Pivot Point S1 | 1.3476 |
Daily Pivot Point S2 | 1.3448 |
Daily Pivot Point S3 | 1.3412 |
Daily Pivot Point R1 | 1,354 |
Daily Pivot Point R2 | 1.3576 |
Daily Pivot Point R3 | 1.3604 |
Source: Fx Street

I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.