May 19, 2023 7:27 AM

USD/CAD Daily Forecast: bulls moving in to attempt above 1.3500

USD/CAD Daily Forecast: bulls moving in to attempt above 1.3500

As the US Dollar strengthens, USD/CAD is moving higher in Asia. USD/CAD is now trading at 1.3511 and has ranged from a low of 1.3486 to a high of 1.3512. 

The decline in oil prices has also put pressure, and Bank of Canada Governor Tiff Macklem refrained from backing the recent move by the market to price in another interest rate increase by the central bank.
In remarks made after the release of the BoC's financial system assessment, Macklem claimed that April's inflation increase—the first in ten months—was an aberration and predicted that consumer prices would keep falling.

Futures are currently putting in a 60% possibility that the central bank would resume raising interest rates by July, down from 80% before Macklem's remarks.

The prospect of higher interest rates for longer has increased elsewhere due to the confidence surrounding the debt ceiling negotiations in Washington. As a result, on Friday, the US Dollar strengthened to almost a six-month high versus the yen due to higher US Treasury rates.

According to the analysis, President Joe Biden and top US congressional Republican Kevin McCarthy stressed earlier this week their resolve to quickly reach a deal to raise the government's $31.4 trillion debt ceiling. They hoped to finalize a deal after Biden returns from the Group of Seven meeting in Japan on Sunday.

USD/CAD Analysis Charter: