empty
25.02.2025 01:30 PM
USD/CAD: The Pair Remains Under Pressure from Multiple Factors

This image is no longer relevant

After gaining during the Asian session, USD/CAD has stalled, trading below the 1.4260 level.

This image is no longer relevant

This decline comes amid a slight weakening of the U.S. dollar.

This image is no longer relevant

Recent weak macroeconomic data from the U.S., particularly preliminary PMI indices, showed that private sector business activity in February fell to a 17-month low. This reinforced expectations of potential Federal Reserve rate cuts later this year, weighing on the U.S. dollar index.

This image is no longer relevant

Additionally, the recovery in crude oil prices is supporting the Canadian dollar, exerting further downward pressure on USD/CAD.

Fundamental Factors Driving the Pair

The increase in consumer inflation in Canada has led investors to reconsider their expectations regarding a potential rate cut by the Bank of Canada at its next March 12 meeting. This factor bolsters the Canadian dollar and contributes to the bearish sentiment surrounding USD/CAD.

However, concerns over the economic impact of the tariffs imposed by U.S. President Donald Trump may limit aggressive buying of the Canadian dollar. Trump confirmed that tariffs on imports from Canada and Mexico will take effect on March 4, adding a layer of uncertainty to market sentiment.

Key Catalysts for USD/CAD Today

Traders should focus on the release of the U.S. Consumer Confidence Index, which, along with speeches from FOMC members, could influence the U.S. dollar and provide new momentum for USD/CAD.

Additionally, crude oil price movements could create short-term trading opportunities during the U.S. session.

Technical Outlook

From a technical perspective, oscillators on the daily chart remain firmly in negative territory, suggesting that the path of least resistance for USD/CAD is to the downside.

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 Outlook for the Japanese Yen Remains Confidently Bullish

The Bank of Japan (BoJ) kept interest rates unchanged on Wednesday, and the market reacted neutrally, as this outcome was widely expected. BoJ Governor Kazuo Ueda stated that the risk

Kuvat Raharjo 23:46 2025-03-20 UTC+2

The Dollar Takes Back Its Own

Markets shoot first and ask questions later. Upon hearing Jerome Powell's assurance that the Federal Reserve had everything under control and that there would be no recession, U.S. stock indices

Marek Petkovich 23:45 2025-03-20 UTC+2

XAU/USD. Analysis and Forecast

Gold is experiencing a slight decline after reaching a new all-time high, remaining in a defensive stance. Currently, bullish traders are exercising caution, as indicated by overbought conditions

Irina Yanina 10:29 2025-03-20 UTC+2

Fed's message music to bulls' ears

The Fed is not throwing a lifeline to the S&P 500, but does it need one? Lifelines are for those drowning, while the market is merely spooked by a fleeting

Marek Petkovich 09:05 2025-03-20 UTC+2

Markets Are Stuck in a Vicious Circle with No Exit in Sight (Potential Decline for Bitcoin and Gold Prices)

The markets are currently experiencing significant shock due to a prevailing negative sentiment that looms over them like a heavy burden, with no resolution in sight. Given this situation

Pati Gani 08:23 2025-03-20 UTC+2

What to Pay Attention to on March 20? A Breakdown of Fundamental Events for Beginners

There are several macroeconomic events scheduled for Thursday, primarily in the UK. Key reports will include the unemployment rate, changes in the number of unemployed individuals, and average wages

Paolo Greco 07:15 2025-03-20 UTC+2

GBP/USD Pair Overview – March 20: Bank of England Vote May Cool Bullish Sentiment

The GBP/USD currency pair traded very calmly on Wednesday, considering the evening movements. As a reminder, we are not analyzing the results of the Federal Reserve meeting

Paolo Greco 02:18 2025-03-20 UTC+2

EUR/USD Pair Overview – March 20: The Euro Holds a Strong Leadership Position

On Wednesday, the EUR/USD currency pair experienced a slight pullback but failed to consolidate below the moving average line. As per tradition, we will not analyze the outcome

Paolo Greco 02:18 2025-03-20 UTC+2

EUR/JPY: Mixed Outcomes of the Bank of Japan's March Meeting and Germany's "Debt Brake" Reform

The Bank of Japan has concluded its March policy meeting, delivering the most anticipated baseline scenario—keeping all monetary policy parameters unchanged. Market participants closely followed the statements of BOJ Governor

Irina Manzenko 23:43 2025-03-19 UTC+2

Euro Hits the Ceiling

Bets are now closed, ladies and gentlemen! Many have already played out. The EUR/USD's hesitation to rise following the Bundestag's approval of Friedrich Merz's fiscal stimulus package indicates that this

Marek Petkovich 23:43 2025-03-19 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.