empty
23.05.2025 04:43 PM
USD/CAD. Analysis and Forecast

This image is no longer relevant

The pair is trending lower, dropping close to the key psychological level of 1.3800 amid broad-based U.S. dollar weakness.

Traders have raised their expectations for Federal Reserve rate cuts following softer-than-expected Consumer Price Index (CPI) and Producer Price Index (PPI) data released last week. An additional factor weighing on the dollar is concern that President Trump's new legislative proposal could further worsen the U.S. budget deficit. These concerns contributed to further dollar weakness—even yesterday's upbeat U.S. Services PMI data failed to support the greenback.

This image is no longer relevant

This is the primary driver pressuring the USD/CAD pair to the downside.

The oil market is also playing an important role. Crude oil prices have halted their recent pullback but remain under pressure due to uncertainty surrounding nuclear negotiations between the U.S. and Iran.

This image is no longer relevant

This situation supports the Canadian dollar, as Canada's economy is highly dependent on oil exports. Moreover, stronger-than-expected Canadian core inflation data released on Tuesday have reduced the likelihood of a June rate cut by the Bank of Canada, further supporting the loonie.

Fundamentally, the path of least resistance for the USD/CAD pair remains downward. Technical analysis confirms this bearish outlook, as this week's break below the 1.3900 level signals continued downside momentum. Additionally, oscillators on the daily chart remain in negative territory, reinforcing the bearish view.

To identify new trading opportunities today, attention should be paid to the release of Canadian retail sales data and U.S. new home sales, which could provide fresh directional impulses for the pair.

Irina Yanina,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

The UK–US Deal Has Been Reached, But Tariffs Remain

Trump's first deal signed. As expected, the UK was the lucky party to sign Donald Trump's first trade deal. Prime Minister Keir Starmer can rightly be considered an outstanding leader—he

Chin Zhao 00:36 2025-06-18 UTC+2

EUR/USD. Caution and Vigilance

The euro-dollar pair remains confined to the 1.15 range, demonstrating a kind of "stoic restraint" against the backdrop of major fundamental developments. Traders purposefully ignore even important data releases

Irina Manzenko 00:35 2025-06-18 UTC+2

The Dollar Gets a Second Chance

The stock market quickly bought the dip. Oil is swinging wildly. Forex appears paralyzed by the unfolding events in the Middle East. Investors are trying to assess the consequences

Marek Petkovich 00:35 2025-06-18 UTC+2

NZD/USD. Analysis and Forecast

At present, NZD/USD is demonstrating moderate activity and attracting buyers. However, a strong continuation of the upward movement has yet to materialize, as the market remains within its familiar weekly

Irina Yanina 20:39 2025-06-17 UTC+2

GBP/USD. Analysis and Forecast

The GBP/USD pair is steadily holding above the key psychological level of 1.3500 ahead of the UK Consumer Price Index release and the upcoming monetary policy meetings of the Federal

Irina Yanina 20:24 2025-06-17 UTC+2

The Kiwi Doesn't Give Up Despite New Zealand's Weak Economy

We previously noted that New Zealand's economy currently appears weak, and recent data has done nothing to challenge that assessment. The PMI indices deteriorated sharply in May, with the manufacturing

Kuvat Raharjo 12:10 2025-06-17 UTC+2

Market may be falling into same trap again

History is repeating itself. Ahead of America's Independence Day, many market participants were saying that Donald Trump's bark was worse than his bite — suggesting the US president issued many

Marek Petkovich 11:07 2025-06-17 UTC+2

Middle East Crisis as a Prelude to Global War... (Limited Downside Possible for Bitcoin and EUR/USD)

The missile standoff between the U.S. proxy Israel and Iran continues. Yesterday's unexpected departure of the U.S. president from the G7 summit in Canada sparked speculation that America might engage

Pati Gani 09:04 2025-06-17 UTC+2

What to Pay Attention to on June 17? A Breakdown of Fundamental Events for Beginners

Only a few macroeconomic reports are scheduled for Tuesday, and none are significant. In the Eurozone, we'll see entirely secondary economic sentiment indexes from the ZEW Institute

Paolo Greco 06:38 2025-06-17 UTC+2

GBP/USD Overview – June 17: Fed and BoE Meetings as a Reason to Sell the Dollar

On Monday, the GBP/USD currency pair also traded relatively calmly, with a bullish bias. The British pound doesn't reach new three-year highs every day, but looking at almost any higher

Paolo Greco 03:49 2025-06-17 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.