USD/CAD Expected To End Trading Week With Gains

The USD/CAD pair opened at 1.29455 and is now trading at 1.2990; up by 0.35%. the asset is about the end the week with a gain of more than 200 pips. The Canadian dollar is still expected to sharply rise versus both NZD and AUD. Analysts even expect the USD/CAD pair to move further to the upside, on the back of a stronger US dollar. They have a target of 1.3420 and a stop-loss of 1.2600.

Part of the resilience for CAD this week in depreciating less than the rest of G10 was due to the stronger underlying measures of inflation that helped fuel some increased pricing for rate hikes by the BoC.

Near-term outlook for crude oil remains poor with the slowdown in global growth weighing more heavily on the price of oil.

In addition, there have been numerous reports indicating Russia’s capability of maintaining its status as a key supplier of crude oil which has left the supply-demand balance globally less supportive for crude oil prices.

The impact of rate hikes is becoming more evident in Canada more quickly given the leverage in Canada housing is higher.