In the Asian session on Wednesday (November 9), USD/CAD fell and was currently trading around 1.3440. As of 09:58 Beijing time, USD/CAD was quoted at 1.3440, an increase of 0.13%. The exchange rate of USD/CAD on the previous trading day The lowest price was 1.3384, and the closing price was 1.3432. USD/CAD fell below the 1.35 mark last week, but Commerzbank economists are skeptical that the Canadian dollar can strengthen further.
“While the market expects the Bank of Canada to raise rates to a peak of 4.6%, the Fed rate peak appears to be expected to be higher, reaching just under 5.3%,” they said. “If the Bank of Canada’s rhetoric manages to sound hawkish, then Rate hike expectations bias could narrow again, but that seems unlikely to us at the moment. If the market does price in a bigger rate hike from the Bank of Canada, then more pronounced pressure on the housing market and increased likelihood of a (deeper) recession Concerns over the U.S. dollar, which is hardly bullish for the Canadian dollar, should also weigh in. In addition, the U.S. dollar remains the currency market’s asset of choice as a safe haven amid rising risk aversion.”
USD/CAD technical analysis
USD/CAD fell in early Asian trade after facing a key hurdle at 1.3468. The sharp rally in the S&P 500 stock market shows that the risk-taking urge is solid, with every pullback in risk-aware assets being seen as a buying opportunity for market participants.
