USD/CAD Price Forecast: Trades Sideways Above 1.4300
- USD/CAD oscillates inside Thursday’s trading range around 1.4330.
- The Fed is in no hurry to move to interest rate cuts amid elevated consumer inflation expectations.
- Market experts see the BoC reducing interest rates again in April.
The USD/CAD pair ticks higher to near 1.4330 in European trading hours on Friday but remains inside Thursday’s trading range. The Loonie pair is marginally higher even though the US Dollar (USD) trades strongly, suggesting the Canadian Dollar (CAD) also trades firmly.
Canadian Dollar PRICE Today
The table below shows the percentage change of Canadian Dollar (CAD) against listed major currencies today. Canadian Dollar was the strongest against the Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.17% | 0.17% | 0.40% | 0.02% | 0.22% | -0.04% | 0.07% | |
| EUR | -0.17% | 0.02% | 0.26% | -0.12% | 0.06% | -0.14% | -0.11% | |
| GBP | -0.17% | -0.02% | 0.23% | -0.14% | 0.05% | -0.15% | -0.12% | |
| JPY | -0.40% | -0.26% | -0.23% | -0.39% | -0.19% | -0.41% | -0.39% | |
| CAD | -0.02% | 0.12% | 0.14% | 0.39% | 0.18% | -0.01% | 0.01% | |
| AUD | -0.22% | -0.06% | -0.05% | 0.19% | -0.18% | -0.20% | -0.26% | |
| NZD | 0.04% | 0.14% | 0.15% | 0.41% | 0.00% | 0.20% | 0.03% | |
| CHF | -0.07% | 0.11% | 0.12% | 0.39% | -0.01% | 0.26% | -0.03% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Canadian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent CAD (base)/USD (quote).
The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, moves higher to near 104.10. The Greenback gains as the Federal Reserve (Fed) has expressed that interest rates will not be reduced in the near term.
On Wednesday, the Fed left interest rates unchanged in the range of 4.25%-4.50%, as expected, and stuck with their projection of cutting interest rates two times this year. Fed Chair Jerome Powell stated that monetary policy adjustments are not ideal in the current scenario, given “unusually elevated” uncertainty due to new economic policies under the leadership of United States (US) President Trump.
Meanwhile, the Canadian Dollar trades higher even though market participants are confident that the Bank of Canada (BoC) will cut interest rates again. Analysts at Bank of America (BofA) expect the BoC to cut interest rates by 25 basis points (bps) to 2.50% in April but cautioned that the decision could be influenced by US "reciprocal tariffs" and the March Consumer Price Index (CPI) data.
USD/CAD holds above the 100-period Exponential Moving Average (EMA), which is around 1.4226, suggesting that the overall trend is bullish.
The 14-period Relative Strength Index (RSI) oscillates in the 40.00-60.00 range, indicating a sideways trend.
Going forward, an upside move above the March 10 high of 1.4470 will open the door toward the psychological resistance of 1.4500 and the January 30 high of 1.4595.
On the contrary, a breakdown below the February 14 low of 1.4151 by the pair would expose it to the December 9 low of 1.4094, followed by the December 6 low of 1.4020.
USD/CAD daily chart
(Click on image to enlarge)
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