- USD/CAD stable despite US Dollar strength, boosted by rising WTI oil prices supporting the Canadian Dollar.
- Hurricane Francine sends oil prices soaring; US producers evacuate Gulf Coast personnel, cutting output.
- Speculation mounts over BoC rate cut due to rising unemployment in Canada; upcoming US CPI data will influence Fed decisions.
The USD/CAD remained virtually unchanged during the North American session and traded around the 1.3560 level as buyers failed to break the strong resistance seen at the 200-day moving average (DMA) at 1.3588.
USD/CAD trades near 1.3560 as higher oil prices limit the pair’s upside potential
Market sentiment remains upbeat as Wall Street posts gains, while a strong US Dollar failed to push USD/CAD towards the 1.3600 figure, mainly due to higher oil prices.
West Texas Intermediate (WTI), the benchmark for U.S. crude oil, has risen on fears that Hurricane Francine is about to hit the Louisiana coast. According to Reuters, “Oil and gas producers along the Gulf Coast have begun evacuating personnel and reducing drilling to prepare for Tropical Storm Francine.”
The Canadian dollar has weakened since the Bank of Canada (BoC) became the first major central bank to cut rates amid fears of an economic slowdown. Last week, Canada’s unemployment rate rose to 6.6%, the highest in seven years, excluding the two years of the COVID-19 pandemic.
BoC Governor Tiff Macklem will speak on Tuesday. Last week, he said a more significant rate cut is possible if the economy needs a boost.
On the US front, investors are keeping an eye on the release of the Consumer Price Index (CPI) for August, which is expected to confirm that the Federal Reserve could start cutting rates at the next monetary policy meeting on September 17-18.
USD/CAD Price Forecast: Technical Outlook
From a technical perspective, the pair is set to continue the ongoing downtrend unless USD/CAD breaks above the 200-day DMA at 1.3588, which will expose the 1.3600 figure. Further upside potential will be seen once cleared, with the next key resistance zone being 1.3618, the highs of August 22 and 23, and the confluence of the 50-day and 100-day DMA around 1.3667/75.
Conversely, on the path of least resistance, the first support for the USD/CAD would be 1.3550. A break of the latter would expose 1.3500, followed by the September 6 low at 1.3465.
Canadian Dollar PRICE Today
The table below shows the exchange rate of the Canadian Dollar (CAD) against major currencies today. The Canadian Dollar was the strongest currency against the Swiss Franc.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.42% | 0.42% | 0.57% | -0.05% | 0.12% | 0.44% | 0.51% | |
| EUR | -0.42% | -0.05% | 0.21% | -0.47% | -0.35% | 0.04% | 0.07% | |
| GBP | -0.42% | 0.05% | 0.11% | -0.41% | -0.30% | 0.06% | 0.11% | |
| JPY | -0.57% | -0.21% | -0.11% | -0.61% | -0.43% | -0.11% | 0.14% | |
| CAD | 0.05% | 0.47% | 0.41% | 0.61% | 0.21% | 0.48% | 0.72% | |
| AUD | -0.12% | 0.35% | 0.30% | 0.43% | -0.21% | 0.36% | 0.39% | |
| NZD | -0.44% | -0.04% | -0.06% | 0.11% | -0.48% | -0.36% | 0.06% | |
| CHF | -0.51% | -0.07% | -0.11% | -0.14% | -0.72% | -0.39% | -0.06% |
The heatmap shows percentage changes of major currencies. The base currency is selected from the left column, while the quote currency is selected from the top row. For example, if you choose the Canadian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change shown in the chart will represent the CAD (base)/USD (quote).
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.
