Usdcad Pushes Higher

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Usdcad Pushes Higher

Usd/Cad Pushes Higher On A Softer Cad

According to a senior FX strategist from Scotiabank, the Canadian Dollar remains weak against the US Dollar. The weakness of the CAD is mainly due to the weakness in the prices of the commodities.

Scotiabank's strategist added that the USD/CAD continues to trade higher and is already above the forecast of 1.3581. Given the softer commodities, it seems that the CAD will remain on the defensive for now. They also added that no value data is coming from Canada for today.

Boc Rate Cut Expected

However, Friday's employment data will be an important event as the Bank of Canada (BoC) will be using it to adjust its monetary policy.

For the most part, the BoC is likely to cut the policy rate by 35 bps. However, some are also forecasting a rate cut of 25 or 50 bps.

According to the former BoC Governor, a 50 bps rate cut from the Bank of Canada is highly likely given the condition of the economy.

As of now, the USD continues to perform well and has a firm undertone against the CAD and other currencies. It can be confirmed by looking at the intraday and the D1 charts of the USD/CAD.

If we look back, the rise in the USD started last week and it even continues today with no end in sight for now. However, it seems to be getting a little out of hand on the intraday timeframes.

Also, the DMI oscillator on the USD/CAD charts also supports the US Dollar. The nearest support is around 1.3620 followed by the next one at 1.3600.

deeper-than-expected rate cut by the Bank of Canada will be bad news for the already struggling Canadian Dollar. Right now, the CAD is in red due to the commodities but lower rates could become another reason for selling the CAD against the USD.

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