empty
22.05.2025 12:12 PM
USD/CAD. Analysis and Forecast

This image is no longer relevant

The USD/CAD pair is encountering difficulties in its attempt to recover following an overnight rebound from the 1.3815–1.3810 level, indicating a continuation of the week-long downtrend.

Oil prices are rebounding after a recent pullback, which is also supporting the Canadian dollar. Uncertainty surrounding nuclear negotiations between the U.S. and Iran is putting additional pressure on the market, driving oil prices higher—an outcome that benefits the Canadian dollar. Recently released stronger-than-expected core inflation data in Canada has dampened expectations for a rate cut by the Bank of Canada, further bolstering the loonie.

On the other hand, the U.S. dollar remains under pressure due to Moody's downgrade of the U.S. sovereign credit rating, growing concerns over the widening U.S. budget deficit linked to President Donald Trump's sweeping tax reform plan, and ongoing tensions in trade relations with China. Expectations that the Federal Reserve may cut interest rates in 2025 are also keeping the dollar weak, contributing to continued downward pressure on the USD/CAD pair.

This image is no longer relevant

From a technical perspective, the recent breakdown below the 200-day Simple Moving Average (SMA) and breach of the psychological 1.3900 level favor the bears. Oscillators on the daily chart are also in negative territory, confirming a short-term bearish outlook for USD/CAD.

Today, traders should watch for new trading opportunities during the North American session, particularly following the release of preliminary global PMI figures and macroeconomic data from the U.S.

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 dollar cannot find a reason to strengthen

The CFTC report showed that expectations for a reversal in the dollar have not materialized. After three weeks of relative stability, during which the total short position

Kuvat Raharjo 19:16 2025-06-03 UTC+2

The Pound Rises Against All Odds

The manufacturing PMI in May came in above expectations, but that was where all the positivity ended — 46.6 points, still below the expansion zone, and there's no talk

Kuvat Raharjo 19:09 2025-06-03 UTC+2

USD/JPY. Analysis and Forecast

The USD/JPY pair is showing mixed dynamics: despite the general recovery of the US dollar, the Japanese yen is under pressure from intraday sellers amid a combination of negative factors

Irina Yanina 18:27 2025-06-03 UTC+2

GBP/USD. Analysis and Forecast

The GBP/USD pair is attracting sellers today, pulling back from yesterday's high. This pullback is associated with a moderate strengthening of the US dollar, which is exerting pressure

Irina Yanina 18:24 2025-06-03 UTC+2

Traders Didn't Believe the Japanese Regulator

The Japanese yen lost some ground against the US dollar after Bank of Japan Governor Kazuo Ueda hinted today that the central bank may continue to slow the pace

Jakub Novak 11:16 2025-06-03 UTC+2

Market startles monster

Over time, we get used to everything — the good and the bad. Investors have finally come to terms with the fact that they will have to build businesses under

Marek Petkovich 10:44 2025-06-03 UTC+2

Deteriorating U.S. Economic Conditions Bring Fed Rate Cuts Closer (Potential for Continued Decline in #USDX and EUR/JPY Pair)

Although the market has largely stopped reacting to incoming economic data—especially from the U.S.—and is more focused on the geopolitical and economic moves of Donald Trump, who is steering

Pati Gani 09:52 2025-06-03 UTC+2

Everything Is Still Working Against the U.S. Dollar

Despite U.S. President Donald Trump's efforts to secure more trade agreements, the U.S. dollar continues to decline sharply against several other assets as negotiations with China and Europe falter

Jakub Novak 09:09 2025-06-03 UTC+2

What to Pay Attention to on June 3? A Breakdown of Fundamental Events for Beginners

There are only two macroeconomic reports scheduled for Tuesday. Although the first report looks significant on its own and the second one is directly related to the U.S. labor market

Paolo Greco 06:53 2025-06-03 UTC+2

GBP/USD Overview – June 3: Trump Deals Another Slap to the Dollar

The GBP/USD currency pair surged upward again on Monday. Just as the British pound had started a correction and even consolidated below the moving average line, Trump once again announced

Paolo Greco 04:38 2025-06-03 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.