USDCAD| Bullish channel with target at 1.3480

USDCAD Analysis

Canadian Dollar Weakness: The CAD is facing downward pressure against major currencies, primarily due to the decline in the crude oil market. This is a significant factor, as the Canadian economy is closely linked to oil prices.

Impact of Economic Data: Upcoming Canadian data releases, such as the International Merchandise Trade Balance and Building Permits, are expected to show declining figures. A decrease in the Trade Balance and a slight drop in Building Permits are anticipated. These data could further influence the strength of the CAD.

Oil Market Dynamics: With Saudi Arabia reducing prices for Asian partners and the continuous production cuts by OPEC being offset by reduced demand, particularly from China, there is a direct impact on the Canadian economy. Additionally, high US Crude Oil production challenges the expected global undersupply.

US Economic Indicators: The recent US Nonfarm Payrolls report and the expectations for the upcoming US Consumer Price Index (CPI) are also influencing the pair. Strong US employment data and the slightly anticipated increase in CPI could support the USD, suggesting a less likely scenario of immediate Fed rate cuts.

USD/CAD Pair Movement: Despite these factors, the USD/CAD pair has shown limited movement, staying within the previous trading range and displaying a slight upward trend in the Asian session. It remains above the mid-1.3300s, indicating a potential continuation of its recent recovery from a low.