USD/CAD moves higher after failing to break below 1.3800 – BBH

FXStreet Insights Team FXStreet

USD/CAD climbs after a failed attempt to break key technical support at 1.3800, with ongoing trade uncertainties keeping pressure on the Canadian Dollar (CAD), BBH FX analysts report.

No trade deal in sight weighs on CAD

"USD/CAD is higher after failing to sustain a break below key technical support at 1.3800. While trade hostility between Canada and the US have peaked, there is no trade deal in sight which remains a drag for CAD."

"The Bank of Canada annual Financial Stability Report is out today (3:00pm London). The 2024 report concluded that Canada’s financial system remained resilient while warning that higher debt serviceability and stretched asset valuations were the two key risks to stability. The updated report will likely be expanded to assess how trade uncertainty is affecting the Canadian financial system."

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