USD CAD Price Forecast: Trades near 1 3800 after retreating from levels near nine-day EMA

18 Apr USD CAD Price Forecast: Trades near 1 3800 after retreating from levels near nine-day EMA

With that being said, the moving averages, the 50 day EMA and the 200 day EMA just above. And those could cause a little bit of dynamic resistance, but the 1.39 level and the 1.38 level underneath both are areas of potential support. You can even make an argument for a little bit of a falling wedge, but really at this point, I think you’ve got a potential move towards a 1.42 level if the US dollar continues to strengthen overall. US Dollar to Canadian Dollar exchange rate prediction for tomorrow and the next trading days.

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Higher Oil prices also tend to result in a greater likelihood of a positive Trade Balance, which is also supportive of the CAD. Adding to this, the Trump administration is reportedly considering lowering the tariffs on China to 50% from 145% as soon as next week. This comes ahead of the crucial US-China tariff negotiations over the weekend and helps to ease market concerns that an all-out trade war might trigger a US recession, which, in turn, should act as a tailwind for the Greenback. US Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer are set to meet their Chinese counterparts in Switzerland on Saturday to discuss trade and economic issues. The USD/CAD pair tells the trader how many Canadian dollars (the quote currency) are needed to purchase one U.S. dollar (the base currency).

However, the dollar rallied on Monday after reports of a deal between China and the US. Such a move might lead to a pause in tariffs that would lift the cloud of uncertainty over both economies. Explore more forecasts involving United States Dollar (USD) paired with other major currencies. Monthly and yearly forecasts provide reference points for medium to longer-term planning.

BofA: We revise USD/CAD forecasts lower for the medium term

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet. These comments will offer fresh insights into whether the Fed views the recent disinflation trend as sufficient to warrant rate cuts or whether a more cautious approach will prevail. Here’s some of the best regulated forex brokers in Canada to check out.

The US and China finally met over the weekend after weeks of a stalemate. The two nations have been at war with each hiking tariffs to unsustainable levels. This trade war has caused axitrader review a lot of anxiety in the markets, with US assets suffering the most. Economists have even predicted a global recession due to these tariffs.

About U.S. Dollar / Canadian Dollar

US Dollar to Canadian Dollar exchange rate chart for the last 8 hours and exchange rate forecast for the next velocity trade 8 hours. Find out how the EUR/USD, GBP/USD, USD/JPY, and other currency pairs could change in 2024. In its reports, the central bank highlights that higher interest rates help ease price pressures in the country, leading to reduced inflation.

How does the price of Oil impact the Canadian Dollar?

The 30-day average rate is C$ 1.3866, with a +0.59% difference compared to today. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you’re a beginner or an expert, find the right partner to navigate the dynamic Forex market.

The Canadian dollar exchange rate is influenced by various factors, including commodity prices, primarily oil prices. As a major axitrader review exporter of natural resources, especially oil, Canada depends on demand for its products, with the US being their primary consumer. Due to the strong impact of oil prices on the exchange rate, CAD is considered a commodity currency. Other factors contributing to the CAD’s volatility include global commodity prices, especially oil, as fluctuations in these markets directly affect Canada’s export revenues. Changes in trade relations, particularly with key partners like the United States, also impact the CAD’s exchange rate.

Inflation is another economic value that is important for this pair. It is measured among others by the CPI (Core Price Index) and the PPI (Production Price Index). They are key indicators to measure inflation and changes in purchasing trends. The BoC is likewise set to continue easing interest rates through 2025, at least at a faster pace than the Fed is expected to, which will apply pressure on CAD’s already-rising rate differential. The BoC is under significant pressure to continue lowering interest rates.

US President Donald Trump reignited global economic anxiety after announcing a blanket 10 percent tariff on all imports, with even higher duties placed on nations like China. While the move is intended to support domestic industries, investors interpreted it as a sign of potential retaliation, strained trade relationships, and a higher risk of recession. ActionForex.com was set up back in 2004 with the aim to provide insightful analysis to forex traders, serving the trading community for over a decade. Empowering the individual traders was, is, and will always be our motto going forward. Saqib Iqbal is a market analyst, prop fund trader and mentor, serving the industry with his analysis and educational content since 2011. The author has great exposure to different financial markets and institutions.

• Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex…
• The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
• He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy.
• Trump’s remarks, however, keep a lid on the optimism led by the announcement of US-China trade talks later this week and hold back the USD bulls from positioning for any further gains.
• This trade war has caused a lot of anxiety in the markets, with US assets suffering the most.

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Economic indicators such as GDP growth, employment rates, and inflation significantly impact the USD’s value. Changes in U.S. monetary policy, particularly interest rate adjustments by the Federal Reserve, can strengthen or weaken the dollar against other currencies. In this article, Benzinga offers a comprehensive USD/CAD forecast by combining technical and fundamental analysis to provide a clearer picture of the currency pair’s potential future movements. Whether you’re a seasoned market expert or a curious newcomer, this analysis will provide you with essential insights for trading this important currency pair.

• Investors rushed back into risk assets, betting that the worst might be behind us.
• However, the unemployment rate jumped from 6.7% to 6.9%, indicating weakness.
• Macroeconomic data releases gauge the health of the economy and can have an impact on the Canadian Dollar.
• So, you will certainly hear a certain amount of analysts out there talking about watch oil, it’ll strengthen the Canadian dollar.

The USD/CAD currency pair remains a key focus for traders and financial analysts globally. Recent trends in its exchange rate have highlighted the pair’s responsiveness to economic developments, geopolitical factors and changes in monetary policy, presenting a critical opportunity for forex traders. Representatives of this group usually experience a price decline when the investment environment worsens and demand for natural resources falls. Conversely, an increase in oil prices provides support for such currencies.

While their prolific writing career includes seven books and contributions to numerous financial websites and newswires, much of their recent work was published at Benzinga. The USD/CAD pair is currently in a bullish phase after undergoing a minor sideways correction in recent trading sessions. Supporting this move, the US Dollar Index (DXY) has shown continued strength, driven by rising US Treasury yields and solid US labor market performance.

The CME Group’s FedWatch Tool indicated a nearly 80% chance that the US central bank will maintain the status quo in June. The markets, however, are still pricing in a greater chance of at least three 25-basis-point (bps) Fed rate cuts by the end of this year. Moreover, investors remain worried about a recession on the back of US President Donald Trump’s rapidly shifting stance on trade policies, which act as a headwind for the USD. In fact, Trump announced 100% tariffs on movies produced outside the US on Sunday and also indicated that he plans to impose fresh tariffs on pharmaceutical imports over the next two weeks. Meanwhile, the OPEC+ decision to speed up output increases continues to stoke fears of oversupply and might cap the upside for Crude Oil prices. This might hold back traders from placing aggressive bullish bets around the Canadian Dollar (CAD) ahead of the monthly jobs report from Canada and lend support to the USD/CAD pair.