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USD/CAD Price Forecast: Influenced by US CPI, BOC Policy, and Market Trends

The USD/CAD pair exhibits a mild bullish trend, stabilizing around the 1.3580 mark, propelled by a resurgent US dollar. Key influences include diminished expectations for a Federal Reserve rate cut, elevating US bond yields and bolstering the dollar, thus favouring USD/CAD gains.

Federal Reserve’s Stance Boosts USD

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Recent US job statistics and Federal Reserve officials’ hawkish comments hint at postponed rate cuts, lifting 10-year US government bond yields and reinforcing the dollar’s strength against the Canadian dollar.

Middle Eastern tensions, particularly Iran’s threats against Israel, have sparked worries of oil supply disruptions, supporting oil prices and, by extension, the Canadian dollar, thereby moderating USD/CAD advances.

Attention is turning to the Bank of Canada’s upcoming monetary policy report, rate statement, and decision on the overnight rate, all poised at 5.00%. Simultaneously, US inflation data are anticipated, with Core CPI and CPI figures expected to provide further market direction.

These events, coupled with the FOMC meeting minutes, will likely play a pivotal role in shaping the USD/CAD and AUD/USD price forecasts and guiding investors through the evolving economic landscape.

USD/CAD Price Forecast: Technical Outlook

The USD/CAD pair edges up to 1.35772, marking a 0.04% increase. Trading above the pivot point of 1.3569, it faces resistance at 1.3611, 1.3647, and 1.3698, suggesting potential upward pressure. Support lies at 1.3520, 1.3477, and 1.3423, where dips may find a floor.

The Relative Strength Index (RSI) at 52, combined with a 50-day EMA of 1.35641, underscores a balanced market dynamic. The outlook remains bullish above 1.3569, yet a descent below this pivotal level could trigger a significant downtrend, making the current market stance critical for future price actions.

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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.
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