Created
: 2025.07.24
- English
- English
- What's Myforex
- Share
- Use tools
- Get information
- What's New
- Help center
- About us
- Customer support
- Terms and policies
-
-
PortfolioShare your portfolio and performance in real time -
Events & contestsEvents and contests held by retail brokers around the world
-
-
Real-time spread comparisonCompare spreads of major retail brokers in real time -
Volatility analysisVisualize volatility as a measure of daily market activity -
Swap point comparisonCompare buy and sell swap values for each broker by symbol -
Market rates & chartsCheck prices for all instruments offered by each broker -
IndicatorsProviding in-house developed indicators for MT4/MT5 -
Trading calculatorsCalculation tools for each broker to help you trade
-
-
World FX newsLatest news on forex and cryptocurrencies from around the world -
Broker informationTrading information of retail brokers worldwide -
MetaTrader4/5 user guideUser guide collection for the latest MetaTrader4/5 -
Economic calendarRelease calendar for indicators from official sources of major economies
USD/CAD Price Forecast: A downside move to near 1.3400 seems warranted
World FX news
Breaking news
USD/CAD Price Forecast: A downside move to near 1.3400 seems warranted
New
2025.07.24 14:21
2025.07.24 14:21
2025.07.24 14:21
- USD/CAD wobbles near an almost three-week low around 1.3600 ahead of flash US PMI and Canadian Retail Sales data.
- Market sentiment improves on hopes that the US and the EU are close to finalize a tariff deal.
- USD/CAD trades below the 20-day EMA, signaling a downside trend.
The USD/CAD pair clings to losses near an almost three-week low around 1.3600 during the Asian trading session on Thursday. The Loonie pair faces selling pressure as the safe-haven demand of the US Dollar (USD) has diminished amid hopes that the United States (US) and the European Union (EU) will strike a trade agreement ahead of the August 1 tariff deadline.
At the time of writing, the US Dollar Index (DXY), which tracks the Greenback's value against six major currencies, seems vulnerable near the two-week low around 97.00.
Investors turn increasingly confident that economies on both sides of the Atlantic could finalize an agreement, which would be similar to the tariff deal took place between US and Japan on Tuesday. This means that Washington has offered a reduction in the baseline tariff and automobile levy to 15%.
Meanwhile, investors await the flash US S&P Global PMI data for July, which will be published at 13:45 GMT.
In Canada, investors will focus on the monthly Retail Sales data for May, which will be published at 12:30 GMT. The Retail Sales data is expected to have declined by 1.1% after a nominal growth of 0.3% in April.
USD/CAD exhibits volatility contraction around 1.3600, oscillating inside Wednesday's trading range. The near-term trend of the pair remains bearish as the 20-day Exponential Moving Average (EMA) slopes downwards to near 1.3666.
The 14-day Relative Strength Index (RSI) slides to near 40.00. A fresh downside momentum would trigger if the RSI falls below that level.
The asset could slide towards the psychological level of 1.3500 and the September 25 low of 1.3420 if it breaks below the June 16 low of 1.3540.
On the contrary, an upside move by the pair above the May 29 high of 1.3820 would open the door towards the May 21 high of 1.3920, followed by the May 15 high of 1.4000.
USD/CAD daily chart
US Dollar FAQs
The US Dollar (USD) is the official currency of the United States of America, and the 'de facto' currency of a significant number of other countries where it is found in circulation alongside local notes. It is the most heavily traded currency in the world, accounting for over 88% of all global foreign exchange turnover, or an average of $6.6 trillion in transactions per day, according to data from 2022. Following the second world war, the USD took over from the British Pound as the world's reserve currency. For most of its history, the US Dollar was backed by Gold, until the Bretton Woods Agreement in 1971 when the Gold Standard went away.
The most important single factor impacting on the value of the US Dollar is monetary policy, which is shaped by the Federal Reserve (Fed). The Fed has two mandates: to achieve price stability (control inflation) and foster full employment. Its primary tool to achieve these two goals is by adjusting interest rates. When prices are rising too quickly and inflation is above the Fed's 2% target, the Fed will raise rates, which helps the USD value. When inflation falls below 2% or the Unemployment Rate is too high, the Fed may lower interest rates, which weighs on the Greenback.
In extreme situations, the Federal Reserve can also print more Dollars and enact quantitative easing (QE). QE is the process by which the Fed substantially increases the flow of credit in a stuck financial system. It is a non-standard policy measure used when credit has dried up because banks will not lend to each other (out of the fear of counterparty default). It is a last resort when simply lowering interest rates is unlikely to achieve the necessary result. It was the Fed's weapon of choice to combat the credit crunch that occurred during the Great Financial Crisis in 2008. It involves the Fed printing more Dollars and using them to buy US government bonds predominantly from financial institutions. QE usually leads to a weaker US Dollar.
Quantitative tightening (QT) is the reverse process whereby the Federal Reserve stops buying bonds from financial institutions and does not reinvest the principal from the bonds it holds maturing in new purchases. It is usually positive for the US Dollar.
Last updated
: 2025.07.24
Related articles
Canadian Dollar extends declines against US Dollar on renewed Trump tariff threats
2025.07.26 02:06EUR/USD supported by Euro resilience amid US recession fears and Fed rate cut bets - Rabobank
2025.07.26 01:39AUD/USD slips from YTD high as stronger US Dollar and wedge rejection weigh on outlook
2025.07.26 01:11USD/CHF steadies below 0.8000 amid resilient US data and easing trade fears
2025.07.26 01:07GBP/USD sinks as strong US data, weak UK Retail Sales weigh
2025.07.26 01:05EU Officials: European framework trade deal with US could happen this weekend
2025.07.25 23:49
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
Was this article helpful?
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Thank you for your feedback.
Thank you for your feedback.
Most viewed
WTI Crude Oil falls below $65 amid rising output and cloudy demand signals
West Texas Intermediate (WTI) is under pressure on Friday as markets respond to a growing global supply outlook and remain cautious on demand prospects.
New
2025.07.26 03:13Canadian Dollar extends declines against US Dollar on renewed Trump tariff threats
The Canadian Dollar (CAD) took another hit on Friday, extending into a two-day backslide against the US Dollar (USD) as Loonie traders hunker down for a fresh bout of tariff-fueled tirades from United States (US) President Donald Trump.
New
2025.07.26 02:06EUR/USD supported by Euro resilience amid US recession fears and Fed rate cut bets - Rabobank
Since US President Trump's reciprocal tariffs address on April 2, the EUR is the second best performing G10 currency after the safe-haven CHF, Rabobank's FX analyst Jane Foley reports.
New
2025.07.26 01:39AUD/USD slips from YTD high as stronger US Dollar and wedge rejection weigh on outlook
The Australian Dollar (AUD) is losing ground against the US Dollar (USD) on Friday, pressured by rising US Treasury yields that continue to support demand for the Greenback.
New
2025.07.26 01:11USD/CHF steadies below 0.8000 amid resilient US data and easing trade fears
The Swiss Franc (CHF) loses ground for a third consecutive day against the US Dollar (USD) on Friday, pressured by improving risk sentiment and a rebound in the US Dollar.
New
2025.07.26 01:07GBP/USD sinks as strong US data, weak UK Retail Sales weigh
The GBP/USD tumbles to a day's low after clearing the 1.3500 figure, following economic data from the United States (US) that justified the Federal Reserve's need to maintain its current monetary policy. Conversely, UK Retail Sales disappointed investors after missing the mark.
New
2025.07.26 01:05EU Officials: European framework trade deal with US could happen this weekend
Citing European Union (EU) officials and diplomats, Reuters reported on Friday that the EU and the United States (US) could each a framework deal on trade this weekend.
New
2025.07.25 23:49EUR/USD flattens as US Dollar Firms; Trump Sees "50-50 Chance" of EU trade deal
The Euro (EUR) trades with a negative tone against the US Dollar (USD) on Friday as the Greenback regains upward momentum, supported by resilient US economic data, renewed trade optimism, and expectations that the Federal Reserve (Fed) will leave interest rates unchanged at its upcoming monetary pol
New
2025.07.25 23:26USD/JPY climbs as improved risk appetite, firm US Dollar weigh on Yen
The Japanese Yen (JPY) is weakening against the US Dollar (USD) on Friday as risk-on sentiment and widening interest rate differentials continue to pressure the Yen.
New
2025.07.25 23:01US President Trump: Powell might be ready to lower rates
United States (US) President Donald Trump said on Friday that he had a good meeting with Federal Reserve (Fed) Chairman Jerome Powell on Thursday and added that the got the impression Powell might be ready to cut interest rates, per Reuters.
New
2025.07.25 22:33Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy
