USD/CAD consolidates below mid-1.3800s, bullish potential seems intact

USD/CAD bulls take a breather after the recent runup to the highest level since August 6. The recent upswing in the USD acts as a tailwind for the pair amid a downtick in Oil prices. Bets for a larger BoC rate cut support prospects for a further near-term appreciating move.

Meanwhile, the fundamental backdrop seems tilted in favor of bullish traders and suggests that the path of least resistance for spot prices remains to the upside. Other factors include market sentiment – whether investors are taking on more risky assets or seeking safe-havens – with risk-on being CAD-positive. As its largest trading partner, the health of the US economy is also a key factor influencing the Canadian Dollar.



How do the decisions of the Bank of Canada impact the Canadian Dollar? The Bank of Canada has a significant influence on the Canadian Dollar by setting the level of interest rates that banks can lend to one another. We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here.

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