The USD/CAD pair is currently drawing significant attention due to the contrasting monetary policies of the U.S. and Canada. The Bank of Canada (BoC) has already implemented multiple interest rate cuts this year, with a fourth cut expected soon. In contrast, the U.S. Federal Reserve has maintained a more hawkish stance, focusing on controlling inflation and delaying rate cuts, which could potentially drive the USD/CAD pair higher in the coming weeks .
One of the critical factors influencing the Canadian dollar is the price of oil, as Canada is a major oil exporter. Traders are watching the OPEC Monthly Report closely, set to be released this month, which could impact oil prices and, consequently, the value of the Canadian dollar. If the report indicates a positive outlook for the oil market, it could put selling pressure on the USD/CAD pair .
From a technical perspective, USD/CAD is currently trading near the 1.3500 level, a key psychological barrier. Indicators like the RSI and stochastics suggest the pair is in bearish territory, which could signal further downside in the short term if the Canadian dollar finds support from strong oil prices or positive economic data .
