empty
30.01.2025 12:48 PM
USD/CAD: Analysis and Forecast

This image is no longer relevant

The USD/CAD pair has rebounded by more than 40 points from its intraday low today. However, spot prices fail to show a strong follow-through and remain within the familiar range that has held for the past month.

This image is no longer relevant

The Canadian dollar continues to face pressure due to the dovish stance of the Bank of Canada (BoC) and concerns over potential trade tariffs proposed by U.S. President Donald Trump. Since June 2024, the BoC has cut interest rates six times in a row and ended its quantitative tightening program.

Additionally, bearish sentiment in the oil market is weighing on the Canadian dollar, which is highly correlated with commodity prices. This, in turn, supports the USD/CAD pair.

This image is no longer relevant

On the other hand, the Federal Reserve decided to maintain its current monetary policy following its two-day meeting on Wednesday. The Fed made it clear that it will not rush into rate cuts unless there is convincing data on inflation and employment.

This provides some support for the U.S. dollar, acting as an additional bullish factor for USD/CAD. However, uncertainty surrounding Trump's administration policies has led to a decline in U.S. Treasury yields, which is limiting the dollar's upward potential and restraining new bullish positions in USD/CAD.

Key Market Events to Watch

For potential trading opportunities today, traders should focus on:

  • The U.S. Q4 GDP report, set for release at the start of the North American session.
  • The U.S. Initial Jobless Claims report.
  • The impact of U.S. bond yields and Trump's trade policy announcements on the U.S. dollar.
  • Oil price movements, which could create short-term trading opportunities for USD/CAD.

Technical Outlook for USD/CAD

Oscillators on the daily chart remain in positive territory and are far from overbought levels, suggesting that the path of least resistance is to the upside. However, the 9-day EMA and 14-day EMA are currently merging, indicating that the pair is likely to remain range-bound for some time before a clearer directional move emerges.

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

Bitcoin caught in bull trap

The bottom shows no strength, the top has no desire. Even the so-called "smart money" is not rushing to buy Bitcoin, citing a confluence of negative factors. Tepid trading activity

Marek Petkovich 15:58 2025-04-01 UTC+2

USD/JPY. Analysis and Forecast

Today, the USD/JPY pair is struggling to benefit from a slight intraday upward movement, especially amid expectations that the Bank of Japan may raise interest rates at a faster pace

Irina Yanina 11:37 2025-04-01 UTC+2

US stock market: bad news fully priced in

The S&P 500 had its worst quarter in three years. Investors are shifting capital from North America to Europe. Once-booming US tech stocks have collapsed. Major banks and respected institutions

Marek Petkovich 09:13 2025-04-01 UTC+2

April to play crucial role in Europe's gas future

Europe's gas sector is entering a critical phase, as the end of the heating season sets the stage for refilling storage facilities, which are now two-thirds empty after the winter

Miroslaw Bawulski 13:01 2025-03-31 UTC+2

WTI – West Texas Intermediate. Prices Lack Support for Growth

West Texas Intermediate (WTI) crude oil prices are attempting to attract buyers, but the market remains in a state of uncertainty. Concerns over President Trump's aggressive trade tariffs are putting

Irina Yanina 12:39 2025-03-31 UTC+2

EUR/USD. Analysis and Forecast

At the start of the new week during the Asian session, the EUR/USD pair attempted to attract buyers, but this was unsuccessful. The euro received support from easing concerns about

Irina Yanina 12:35 2025-03-31 UTC+2

US stock market runs into trouble

Rumors about mutual tariffs and another blow to consumer confidence triggered the second-worst sell-off of the S&P 500 this year. Investors are still holding piles of US stocks

Marek Petkovich 10:58 2025-03-31 UTC+2

EUR/USD. Hello, April: Eurozone Inflation Report, ISM Indices, and Nonfarm Payrolls

The first week of every month is the most informative for EUR/USD traders. The economic calendar traditionally includes a report on inflation growth in the eurozone, American ISM indices

Irina Manzenko 06:28 2025-03-31 UTC+2

GBP/USD Pair Overview – March 31: Nonfarm Payrolls, Trump, and Unemployment May Create New Problems for the Dollar

The GBP/USD currency pair continued to trade sideways near its highs on Friday. This sideways movement has persisted for several weeks, and the British pound has not managed even

Paolo Greco 06:24 2025-03-31 UTC+2

EUR/USD Pair Overview – March 31: A New Week of Trials for the Dollar

The EUR/USD currency pair rose again on Friday. As we can see, the correction against the upward trend of recent weeks ended very quickly. But that's no surprise, given that

Paolo Greco 06:24 2025-03-31 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.