The USD/CAD pair is facing challenges as it consolidates near a multi-week low, impacted by rising tensions in the Middle East and dovish Federal Reserve expectations. Crude Oil prices are on the rise due to geopolitical concerns in the region, supporting the Canadian Dollar and putting pressure on the currency pair. The fear of a wider conflict in the Middle East has led to an increase in Oil prices, while the Fed’s anticipated rate cut is weakening the US Dollar.
Despite these factors, the downside for the USD/CAD pair is cushioned by mixed Canadian jobs data and uncertainty ahead of the release of US inflation figures this week. Traders are cautious about taking strong positions until the market receives more clarity on the economic outlook.
Technical Analysis
Technically, the USD/CAD pair is holding above a key support level, but a break below could signal further bearish movement. On the upside, resistance levels are in place, and a breakout could lead to a bullish trend. Traders should watch out for key levels to determine the next direction of the currency pair.
Overall, the USD/CAD pair is influenced by geopolitical events, economic data releases, and market sentiment. It is important for traders to stay informed and be prepared for potential volatility in the coming days.