USD/CAD is under pressure to fall but still maintains the 1.3700 mid-line, and the market lacks bearish momentum
2025-07-18 14:46:04
USD/CAD fell modestly in the Asian session on Friday (July 18), moving away from the three-and-a-half-week high of 1.3775 hit overnight. The current exchange rate is trading above the 1.3700 mid-line, trading around 1.3738, down less than 0.1% on the day, but a clear bearish trend has not yet formed.
Driving factors
The dollar is under pressure: Fed Governor Waller's dovish remarks (suggesting a rate cut in July) caused the dollar to fall from its highest level since June 23, coupled with the improvement in market risk sentiment, which suppressed the safe-haven dollar.
Downside limited: The market is still betting that the Federal Reserve will maintain high interest rates to fight inflation, limiting the dollar's decline. In Canada, trade policy uncertainty (Trump announced a 35% import tariff on Canada from August 1, and threatened to further increase the tariff if Canada retaliates) curbed demand for Canadian dollars.
Oil price impact: Although crude oil prices continued their overnight rebound, the US's move to impose a 50% tariff on Canadian copper products offset the boost to the Canadian dollar from oil prices.
【Focus】
US data: University of Michigan consumer confidence index, inflation expectations and real estate market data
Risk sentiment: Overall market risk appetite will dominate the trend of the US dollar
Oil price fluctuations: Crude oil price dynamics may provide short-term trading opportunities for exchange rates
【Technology Outlook】
Despite a slight intraday pullback, the pair is still on track to post its second consecutive weekly gain.
At 14:45 Beijing time, the USD/CAD exchange rate is currently 1.3738/39.
Driving factors
The dollar is under pressure: Fed Governor Waller's dovish remarks (suggesting a rate cut in July) caused the dollar to fall from its highest level since June 23, coupled with the improvement in market risk sentiment, which suppressed the safe-haven dollar.
Downside limited: The market is still betting that the Federal Reserve will maintain high interest rates to fight inflation, limiting the dollar's decline. In Canada, trade policy uncertainty (Trump announced a 35% import tariff on Canada from August 1, and threatened to further increase the tariff if Canada retaliates) curbed demand for Canadian dollars.
Oil price impact: Although crude oil prices continued their overnight rebound, the US's move to impose a 50% tariff on Canadian copper products offset the boost to the Canadian dollar from oil prices.
【Focus】
US data: University of Michigan consumer confidence index, inflation expectations and real estate market data
Risk sentiment: Overall market risk appetite will dominate the trend of the US dollar
Oil price fluctuations: Crude oil price dynamics may provide short-term trading opportunities for exchange rates
【Technology Outlook】
Despite a slight intraday pullback, the pair is still on track to post its second consecutive weekly gain.
At 14:45 Beijing time, the USD/CAD exchange rate is currently 1.3738/39.
- Risk Warning and Disclaimer
- The market involves risk, and trading may not be suitable for all investors. This article is for reference only and does not constitute personal investment advice, nor does it take into account certain users’ specific investment objectives, financial situation, or other needs. Any investment decisions made based on this information are at your own risk.
