USD/CAD holds steady at 1.4269 as market participants monitor the 2-year US-Canada yield spread and oil price fluctuations for further directional cues.
Scotiabank notes USD/CAD consolidating near 1.4269 after sharp CAD weakening, with oil offering some support to CAD.
The USD/CAD pair is consolidating near the 1.4269 level following a period of significant Canadian Dollar weakness that began in early September. Scotiabank strategists note that price action is currently tracking the 2-year US-Canada interest rate spread, while recovering oil prices provide a modest floor for the loonie.
The pair is primarily influenced by the 2-year US-Canada interest rate spread and fluctuations in global oil prices, which impact the commodity-linked Canadian Dollar.