empty
05.06.2025 11:33 AM
USD/CAD. Analysis and Forecast

This image is no longer relevant

The USD/CAD pair continues to decline. Fundamental factors support bearish sentiment, indicating that the path of least resistance for spot prices remains downward. Reports of a trade agreement between the U.S. and Canada, which may be concluded before the G7 summit on June 15, along with yesterday's decision by the Bank of Canada to keep interest rates unchanged, continue to support the Canadian dollar. A modest rise in crude oil prices also has a positive impact on the Canadian dollar, reinforcing the negative outlook for the USD/CAD pair amid bearish sentiment toward the U.S. dollar.

This image is no longer relevant

Yesterday, following the release of weaker-than-expected U.S. economic data, traders increased their expectations for a Federal Reserve interest rate cut at the September meeting. This led to a drop in the yields of two-year and 10-year U.S. Treasury bonds to the lowest levels seen since May 9. Additionally, concerns about worsening fiscal conditions in the U.S. and trade uncertainties are limiting any significant strengthening of the U.S. dollar.

This image is no longer relevant

These negative factors suggest that any attempts at a recovery in the USD/CAD pair should be viewed as selling opportunities, which will likely be limited. Today, for better trading opportunities, attention should be paid to the release of weekly initial jobless claims in the U.S., along with speeches by influential FOMC members. This will impact demand for the U.S. dollar. Moreover, crude oil price dynamics will also create short-term trading opportunities for the USD/CAD pair ahead of key monthly employment data from both the U.S. and Canada.

From a technical standpoint, as well as a fundamental one, oscillators on the daily chart confirm the negative outlook 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

GBP/USD Overview – July 3: Jerome Powell Finally Responded to Trump

The GBP/USD currency pair plummeted on Wednesday like a stone. However, every drop in the pair eventually gives way to a much stronger rise. Therefore, at this point, there's

Paolo Greco 03:45 2025-07-03 UTC+2

EUR/USD Overview – July 3: One Big Trump Law Passed, Dollar at 4-Year Lows

The EUR/USD currency pair traded relatively calmly on Wednesday, although the word "calm" may not accurately describe the daily decline of the dollar. The most accurate picture of what's happening

Paolo Greco 03:45 2025-07-03 UTC+2

Transition from Aggressive to Cautious Position by the ECB

The annual economic forum is currently taking place in the Portuguese town of Sintra, which explains the daily speeches by central bank heads. Most of the information being shared

Chin Zhao 00:42 2025-07-03 UTC+2

USD/JPY. Yen: Interrupted Flight

The USD/JPY pair dropped by 200 points over two days and on Tuesday hit a nearly four-week low, testing the support level at 142.70 (the middle line of the Bollinger

Irina Manzenko 00:38 2025-07-03 UTC+2

The Dollar Has Found Its Achilles' Heel

Be careful what you wish for. Euro supporters believe that EUR/USD will reach at least 1.25 by 2026. However, one must understand that while the eurozone may remain a unified

Marek Petkovich 00:38 2025-07-03 UTC+2

USD/JPY. Analysis and Forecast

Recent political and economic statements are having a significant impact on the USD/JPY pair's dynamics. U.S. President Donald Trump expressed frustration over the prolonged trade talks with Japan

Irina Yanina 18:51 2025-07-02 UTC+2

Crowd sets tone, market follows

No fight. The S&P 500 managed to hit new record highs because market professionals — the so-called "smart money" — see no need to go against the prevailing momentum

Marek Petkovich 12:46 2025-07-02 UTC+2

AUD/USD. Analysis and Forecast

Today, the AUD/USD pair is retreating slightly from the new yearly high near 0.6590 reached yesterday and is trading within a narrow range. Nevertheless, the potential for further downside appears

Irina Yanina 12:44 2025-07-02 UTC+2

USD/CHF. Analysis and Forecast

The USD/CHF pair continues to trade within a narrow range above the 0.7900 level, remaining close to price levels last seen in 2011. The US dollar is showing some gains

Irina Yanina 11:58 2025-07-02 UTC+2

Investors Filled with Optimism, Driving Market Demand Higher (EUR/USD and GBP/USD Pairs May Face Corrective Declines)

Markets continue to react positively to the stabilization of the situation in the Middle East in anticipation of negotiations between Israel and Iran. Meanwhile, investors have shifted their full attention

Pati Gani 11:22 2025-07-02 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.