USD/CAD faces pressure as Canada unveils fiscal stimulus measures

USD/CAD is trading under pressure near 1.3850 as Canada's November 4 budget announcement includes accelerated capital expensing provisions. Finance Minister Carney's first budget will allow companies to write off machinery and capital costs more aggressively, mirroring similar US policies introduced earlier this summer. This fiscal stimulus measure is expected to boost Canadian business investment and economic growth, potentially supporting the Canadian dollar. The policy change could narrow the competitive gap with US tax incentives, making Canada more attractive for corporate investment. Technical indicators show USD/CAD testing support at 1.3840, with resistance at 1.3900. A sustained break below current levels could target 1.3800 psychological support. Traders should monitor upcoming Canadian GDP data and oil price movements, which remain key drivers for the loonie's performance against the greenback.