empty
25.02.2025 01:30 PM
USD/CAD: The Pair Remains Under Pressure from Multiple Factors

This image is no longer relevant

After gaining during the Asian session, USD/CAD has stalled, trading below the 1.4260 level.

This image is no longer relevant

This decline comes amid a slight weakening of the U.S. dollar.

This image is no longer relevant

Recent weak macroeconomic data from the U.S., particularly preliminary PMI indices, showed that private sector business activity in February fell to a 17-month low. This reinforced expectations of potential Federal Reserve rate cuts later this year, weighing on the U.S. dollar index.

This image is no longer relevant

Additionally, the recovery in crude oil prices is supporting the Canadian dollar, exerting further downward pressure on USD/CAD.

Fundamental Factors Driving the Pair

The increase in consumer inflation in Canada has led investors to reconsider their expectations regarding a potential rate cut by the Bank of Canada at its next March 12 meeting. This factor bolsters the Canadian dollar and contributes to the bearish sentiment surrounding USD/CAD.

However, concerns over the economic impact of the tariffs imposed by U.S. President Donald Trump may limit aggressive buying of the Canadian dollar. Trump confirmed that tariffs on imports from Canada and Mexico will take effect on March 4, adding a layer of uncertainty to market sentiment.

Key Catalysts for USD/CAD Today

Traders should focus on the release of the U.S. Consumer Confidence Index, which, along with speeches from FOMC members, could influence the U.S. dollar and provide new momentum for USD/CAD.

Additionally, crude oil price movements could create short-term trading opportunities during the U.S. session.

Technical Outlook

From a technical perspective, oscillators on the daily chart remain firmly in negative territory, suggesting that the path of least resistance for USD/CAD is to the downside.

Irina Yanina,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

GBP/USD Pair Overview – March 26: The Pound Isn't Even Trying. Inertial Growth Continues

The GBP/USD currency pair resumed its upward movement on Tuesday. It did so on a day when there were no significant events in the UK, and the only noteworthy report

Paolo Greco 02:40 2025-03-26 UTC+2

EUR/USD Pair Overview – March 26: No News, No Movement

The EUR/USD currency pair traded with low volatility on Tuesday. There have been times when the euro would crawl just 40 pips a day, and while current volatility isn't extremely

Paolo Greco 02:40 2025-03-26 UTC+2

EUR/USD: The Southward Trend Stalls, but Long Positions Remain Risky

A mixed situation has developed around the EUR/USD pair. On the one hand, the bearish sentiment prevails: last week, the price reached a 5-month high at 1.0955, while on Tuesday

Irina Manzenko 23:59 2025-03-25 UTC+2

USD/JPY. Analysis and Forecast

The USD/JPY pair is retreating from the psychological level of 151.00, reached earlier on Tuesday, though this pullback is not accompanied by significant selling pressure. The Japanese yen is attracting

Irina Yanina 18:09 2025-03-25 UTC+2

The Market Has Turned Everything Upside Down

Is the worst behind us? As the S&P 500 surged to a three-week high amid easing tariff threats from Donald Trump, banks and investment firms rushed to the bulls' side

Marek Petkovich 08:18 2025-03-25 UTC+2

What to Pay Attention to on March 25? A Breakdown of Fundamental Events for Beginners

Very few macroeconomic events are scheduled for Tuesday, and none are of significant importance. At best, the German business climate report and U.S. new home sales data can be mentioned

Paolo Greco 06:30 2025-03-25 UTC+2

GBP/USD Pair Overview – March 25: The Pound Rises Before It Even Wakes Up

On Monday, the GBP/USD currency pair again showed upward movement. The pound sterling began rising overnight despite no clear reasons or fundamental drivers. Yet the market on Monday clearly demonstrated

Paolo Greco 04:02 2025-03-25 UTC+2

EUR/USD Pair Overview – March 25: The Euro Continues to Creep Downward in a Correction

The EUR/USD currency pair showed relatively low volatility on Monday. However, looking at the chart below, it becomes clear that volatility hasn't been high recently—aside from a few days several

Paolo Greco 04:02 2025-03-25 UTC+2

EUR/USD: PMI Indices and WSJ Insider Reports

On Monday, EUR/USD traders concentrated on factors that benefitted the U.S. dollar, while negatively impacting the euro. Insider reports from U.S. media concerning the "April 2 tariffs" supported the pair's

Irina Manzenko 00:00 2025-03-25 UTC+2

USD/JPY. Analysis and Forecast

At the start of the week, following the release of a weaker Japanese PMI, the yen came under pressure. This, combined with news of narrower and less aggressive retaliatory tariffs

Irina Yanina 13:20 2025-03-24 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.