empty
28.01.2025 01:43 PM
USD/CAD: The Pair Shows Recovery Today

This image is no longer relevant

The USD/CAD pair is showing signs of recovery today, reaching a more-than-week high at approximately 1.4416 during the European session.

This image is no longer relevant

However, despite this recovery, the pair remains within its familiar range established over the past month, as traders anticipate upcoming events related to monetary policy decisions by the central banks of the two countries.

It is anticipated that the Bank of Canada will decide to cut interest rates by 25 basis points during its meeting on Wednesday, which could provide support for the USD/CAD pair. This diverges from the general market consensus that the Federal Reserve will leave its interest rates unchanged at its meeting on the same day. This divergence in central bank policies creates additional optimism for the US dollar's growth against the Canadian dollar.

Additionally, the US dollar is recovering from its recent decline, which further supports the USD/CAD pair.

This image is no longer relevant

Concerns about the inflationary pressures caused by the protectionist policies of President Donald Trump's administration are driving up the yields on Treasury bonds, which, in turn, strongly support demand for the dollar.

This image is no longer relevant

Meanwhile, a slight recovery in oil prices after their recent drop is helping to limit losses for the Canadian dollar, which is closely tied to commodity prices and sensitive to fluctuations in oil prices. This also acts as a cap on the USD/CAD pair's upward movement.

Key Focus for Traders Today:Traders should pay attention to the publication of US Consumer Confidence Index data, which may offer trading opportunities.

Technical Outlook:

  • Oscillators on the daily chart remain in positive territory, supporting a favorable outlook for the pair.
  • The 9-day EMA and 14-day EMA have converged into a single line and are attempting to cross over, signaling a potentially positive sentiment 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

Will the U.S. Stock Market Continue to Decline and the Euro Rise? (There is a chance for the growth of the CFD contract on the S&P 500 futures and the EUR/USD pair)

The main U.S. stock indexes ended the week in negative territory, reflecting a surprising increase in pessimism amid signs of a slowdown in the national economy. The Friday sell-off

Pati Gani 08:22 2025-02-24 UTC+2

What to Pay Attention to on February 24? A Breakdown of Fundamental Events for Beginners

Very few macroeconomic events are scheduled for Monday, and none are significant. Over the past two weeks, the market has largely ignored fundamental and macroeconomic data. Last week, important reports

Paolo Greco 06:02 2025-02-24 UTC+2

EUR/USD: Final Week of February – German Elections, Core PCE Index, Second Estimate of U.S. GDP

The upcoming week is filled with important fundamental events, which puts the EUR/USD pair at a critical juncture—it could either move toward the 5th figure range or descend

Irina Manzenko 05:02 2025-02-24 UTC+2

U.S. Dollar: Weekly Preview

For many weeks, I have been emphasizing that the U.S. news backdrop would be crucial for the market. However, this is no longer entirely the case. Even in the U.S

Chin Zhao 04:51 2025-02-24 UTC+2

British Pound: Weekly Preview

The pound continues to hold confidence and market support. Unlike the euro, demand for the British currency is rising more steadily, and the corrective wave C in 2 has already

Chin Zhao 04:49 2025-02-24 UTC+2

EUR/USD Pair Review: Weekly Preview – Another Boring Week

The EUR/USD currency pair showed relatively weak volatility last week, and the euro could not continue its growth within the current correction. Only the pound is rising

Paolo Greco 02:13 2025-02-24 UTC+2

GBP/USD Pair Review: Weekly Preview – The Best for the Pound is Already Behind

The GBP/USD currency pair experienced minimal volatility again on Friday, suggesting that the upward movement may be nearing its logical conclusion. Over the past two weeks, there has been

Paolo Greco 02:13 2025-02-24 UTC+2

USD/JPY: Inflation, Kato's Statement, and the Outlook for a Downward Trend

The USD/JPY pair hit a nearly two-month low, reacting to Japan's January inflation report, but then sharply reversed following an unexpected statement from Finance Minister Katsunobu Kato.During Friday's Asian session

Irina Manzenko 12:34 2025-02-21 UTC+2

USD/JPY. Analysis and Forecast

The USD/JPY pair is staging a strong recovery, climbing nearly 150 points from the 149.30-149.25 level, the lowest since December 3. The rebound comes as the Japanese yen weakens following

Irina Yanina 12:31 2025-02-21 UTC+2

Markets. The First Results of Trump's Presidency. What's Next? (Potential USD/CAD Increase and EUR/USD Decline)

The initial impact of D. Trump's presidency on financial markets has been mixed. Let's examine the key takeaways. Starting with stock markets, the U.S. stock market has remained close

Pati Gani 09:21 2025-02-21 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.