USD/CAD's Last Surge Before the Fall?

23 paź 2023

The USD/CAD exchange rate has reversed, reaching the resistance at 1.3750. The Canadian dollar has gained momentum due to support from the U.S. dollar (DXY) at 106.00. The S&P500 has started declining due to market uncertainty linked to tensions in the Middle East and quarterly results. The Israeli leader has ordered an operation in Gaza, raising concerns about conflicts. The U.S. dollar is supported by long-term bond yields, which are at multi-year highs. The yield on 10-year U.S. Treasury bonds is at 5%. The Fed has long-term plans to increase interest rates. The Canadian dollar awaits the Bank of Canada's (BoC) interest rate decision on Wednesday. BoC may keep rates at 5% due to declining labor demand and inflationary pressures. BoC Governor Tiff Macklem forecasts inflation stability at 2%. At the 1.3680 level, I will look for a long entry on M15/M5 in search of MSS and liquidity. Happy trading to all from Nicola, CEO of Forex48 Trading Academy.