USD/CAD Holds Steady Near Key Level After Fed Decision
The USD/CAD pair has gone up slightly for the third day in a row. It is now trading close to 1.3700. This happened after the U.S. Federal Reserve decided to keep interest rates unchanged during its June meeting.
The price has reached the 20-day Exponential Moving Average (EMA), which is an important level many traders watch. This level often shows if the trend will change or continue.
There is mixed sentiment in the market. Some traders are selling the U.S. dollar, while others are waiting for more updates from the Federal Reserve. Everyone is looking for clues on the future direction of interest rates.
At the same time, a possible trade agreement between the U.S. and Canada could support the Canadian dollar. Both countries are working toward a deal in the coming weeks.
However, falling oil prices are putting pressure on the Canadian dollar. Since oil is a big part of Canada’s economy, lower oil prices usually make the Canadian dollar weaker.
Recent weak U.S. retail sales and factory data are also being watched. These may increase chances of a rate cut in the future, which could push the U.S. dollar lower.
Impact / Expectations
The U.S. dollar might move more based on what the Fed says next. A trade deal could help the Canadian dollar, but falling oil prices may hold it back.