Canadian Dollar (CAD) Steady Against US Dollar Amid Trade Uncertainty and Market Volatility

Canadian Dollar (CAD) Steady Versus US Dollar Despite Trade Challenges

The Canadian Dollar (CAD) remains almost unchanged, losing minimal ground against the US Dollar (USD) amid ongoing trade uncertainties and market volatility related to the Digital Services Tax (DST) issue.

Despite short-term pressures, optimism persists that a trade agreement or preliminary deal with the US might be reached before the July 21 deadline. Positive risk sentiment and slightly firmer commodity prices have supported the CAD, although tighter US interest rates have widened spreads in favor of the USD since recent lows in US bond yields.

Technically, the USD/CAD pair shows firm resistance around 1.3700/05, with support near 1.3590/1.3610. A break below support could test lower levels around 1.3545/50 and potentially further down to the 1.3400/20 zone.

Traders remain cautious as the broader downtrend in the USD continues, but moderate USD gains are still expected in the near term.

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• USD/CAD Technical Analysis and Forecast
• Impact of US-Canada Trade Talks on Currency Markets
• Commodity Prices and Their Influence on CAD