Looking ahead, the CAD/USD trajectory will likely remain tied to the Fed’s path. 38 despite a sustained rally in crude oil prices to multi-year highs.
Canadian Dollar Future Outlook: What’s Next for USD/CAD
Canadian inflation cooling faster than expected reduced BoC urgency. dollar is considered a safe-haven currency.
The loonie, being a risk-sensitive commodity currency, tends to sell off in such scenarios, even if the underlying commodity price is rising. This gap in interest rate expectations causes capital to flow toward USD-denominated assets offering higher yields, pressuring the loonie regardless of oil fundamentals.
Canadian Dollar Future Outlook: What's Next for Loonie vs USD
USD/CAD tested the 1. 38 level amid strong US economic data.
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