empty
17.03.2025 12:05 PM
USD/CAD: The Pair Starts the New Week with Caution

This image is no longer relevant

The USD/CAD pair begins the new week with caution, fluctuating within a narrow range above 1.4350 and remaining above the 50-day SMA. However, fundamental factors suggest potential downside risks.

This image is no longer relevant

Positive developments in U.S.-Canada trade negotiations, along with the recent rise in crude oil prices, support the commodity-dependent Canadian dollar, exerting downward pressure on the pair. Oil prices have reached a two-week high amid escalating tensions in the Red Sea, as the U.S. vowed to continue strikes against Yemen's Houthis until their attacks cease. This situation also impacts the market. Additionally, bearish sentiment surrounding the U.S. dollar creates negative prospects for USD/CAD.

This image is no longer relevant

The U.S. Dollar Index remains near multi-month lows due to concerns about the potential negative impact of Trump's tariffs on the economy. Weaker inflation data and signs of labor market cooling may lead to interest rate cuts by the Federal Reserve this year, further restraining dollar bulls.

This image is no longer relevant

Traders should closely monitor the release of U.S. economic data, including retail sales figures and the Empire State Manufacturing Index, which could provide some short-term momentum to the pair during the North American session. However, the key event of the week remains the FOMC monetary policy meeting on Wednesday, which will have a significant impact on the U.S. dollar and set the direction for USD/CAD.

Technical Outlook:

From a technical perspective, bears should wait for confirmation of weakness below the 1.4350 support level, where the 50-day SMA is positioned, before initiating new sell positions. Furthermore, daily chart oscillators have yet to shift into negative territory, indicating that further confirmation is required for a clear bearish signal.

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

Market Conditions Favor the Dollar

Yesterday, the U.S. dollar continued to strengthen against a number of risk assets—particularly gaining ground against the euro and the British pound. Strong U.S. economic data triggered significant movements

Jakub Novak 09:53 2025-05-28 UTC+2

The Market Has Left the Bad Behind

History repeats itself. Markets breathed a sigh of relief and bought the decline in the S&P 500 after Donald Trump's threats of 50% tariffs on the European Union were replaced

Marek Petkovich 09:47 2025-05-28 UTC+2

AUD/NZD. Analysis and Forecast

The AUD/NZD pair attempted to attract buyers on the decline, but so far, there hasn't been enough conviction to support a sustained move. Intraday upward momentum slowed following the Reserve

Irina Yanina 09:33 2025-05-28 UTC+2

GBP/USD Overview – May 28: What Is Trump's Plan This Time? Part 2

The GBP/USD currency pair also traded with a minimal decline. There was little news on the day, so the market decided to take a breather before the next upward move

Paolo Greco 08:00 2025-05-28 UTC+2

EUR/USD Overview – May 28: What Is Trump's Plan This Time?

On Tuesday, the EUR/USD currency pair showed a slight decline. The U.S. dollar continues to struggle to gain strength as market participants lack confidence in it. While it was previously

Paolo Greco 08:00 2025-05-28 UTC+2

What to Pay Attention to on May 28? A Breakdown of Fundamental Events for Beginners

Very few macroeconomic reports are scheduled for Wednesday. Among the more or less noteworthy reports, only Germany's unemployment rate and the change in the number of unemployed can be highlighted

Paolo Greco 06:53 2025-05-28 UTC+2

What Could Trump's Minimal Tariffs Lead To?

Donald Trump has given countries he claims are "robbing the U.S." a three-month deadline to reach trade agreements. As of now, two months into this deadline, only one deal

Chin Zhao 00:45 2025-05-28 UTC+2

NZD/USD. May RBNZ Meeting: Preview

The Reserve Bank of New Zealand (RBNZ) will announce the results of its next policy meeting on May 28. According to most analysts, the central bank is expected

Irina Manzenko 00:44 2025-05-28 UTC+2

The Dollar Is Getting Used to Defeat

Everything has its limits—including Donald Trump's negotiation strategy. The longer his policy of threats followed by postponements continues, the less seriously markets take his actions. His warnings are no longer

Marek Petkovich 20:39 2025-05-27 UTC+2

Inflation in the Eurozone Gives the ECB Room to Act

The euro declined after the release of inflation data from France and the GfK report from Germany. Exactly three years ago, eurozone data showed inflation had risen to 8.1%. Immediately

Jakub Novak 20:26 2025-05-27 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.