USD/CAD Surges Above 1.3415, Hits Highest Level in a Week Amid Strong US Dollar

The US dollar rose against the Canadian dollar, reaching a high of 1.3486, a level not seen since last Friday.

Arslan Butt•Friday, May 12, 2023•1 min read

The US dollar rose against the Canadian dollar, reaching a high of 1.3486, a level not seen since last Friday. The US dollar’s strength has been a driving force in this upswing, which has gained steam since Wall Street’s trading day began.

But recently the stock market has been falling and PacWest Bancorp has dropped by 20%. In addition, crude oil prices have fallen by more than 1.5%, and US rates have fallen significantly.

The Producer Price Index (PPI) rose by 0.2% in April, according to data released by the US Department of Labour, which was below the 0.3% increase expected by economists and investors. The annual rate fell to 2.3% in April from 2.7% in March. In addition, the number of people filing for unemployment benefits increased to 264,000, which is the highest level since October 2021.

The USD/CAD exchange rate has shown signs of improvement, posting its highest daily rise in months. In the short term, 1.3500 and 1.3525 are important resistance levels to keep an eye on, while 1.3420 and 1.3405 represent important support levels. The US dollar is predicted to keep doing well during the American session as long as the price is over 1.3400.

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ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.