The USD/CAD has surged during the trading session on Wednesday, with the 1.40 level continuing to provide support. All things considered, this market appears poised to trend upward, though the ascent will likely be gradual rather than swift. This is primarily due to the fact that many of the transactions occurring in this currency pair USD/CAD are driven by necessity rather than speculative motives. The 50-day EMA provided some support during the trading session, indicating a positive sign for the continuation of the uptrend.
This market USD/CAD appears to be targeting the 1.42 level, potentially reaching as high as 1.4250, considering the significant supply created by a drop in April. The divide persists between Canadians and Americans; however, it does not encompass the entirety of trade relations between the two nations. The current situation reflects the unresolved issues from the initial agreement during Trump’s first term in office.
In my assessment, it may not be as significant as certain individuals perceive it to be. Considering the current landscape, it is evident that the Canadian economy relies significantly on the U.S. economy. Any discord between the two could understandably lead to increased apprehension regarding the ownership of Canadian dollars or investments in Canada.
Overall, it’s certainly an aspect that warrants consideration. Given the current circumstances, with the interest rate differential still leaning towards the Americans and the jobs number expected to be released after the Federal Reserve’s announcements, which may dampen the momentum for rate cuts, it appears prudent to maintain your position and keep collecting the swap at the close of each trading day. The USD/CAD is expected to experience volatility and fluctuations, which is typical behavior for this pair in standard conditions.