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USD/CAD hits weekly highs after Fed signals cautious rate path
USD/CAD has surged to fresh weekly highs around 1.3920, marking a complete reversal from earlier weakness that dominated through Wednesday. The pair gained approximately 0.8% (110 pips) following the Federal Reserve's rate decision, where Chair Powell emphasized the central bank is not committed to a predetermined easing path for December. This hawkish tilt caught markets off-guard, triggering broad USD strength. The Canadian dollar faced additional pressure from declining oil prices and domestic economic concerns. Technical indicators show USD/CAD breaking above the 1.3900 psychological resistance, with momentum indicators turning bullish. The next key resistance lies at 1.3950 (October high), while support has formed at 1.3850. Traders are now positioning for potential further USD strength, particularly if upcoming US economic data supports the Fed's cautious stance on future rate cuts.
USDCAD
Sentiment:
Very Positive
Source: Finnhub