|

USD/CAD Price Forecast: Likely revisit five-month high at around 1.4250

  • USD/CAD rises to near 1.4190 as the US Dollar trades higher.
  • The Fed is expected to deliver two more interest rate hikes this year.
  • Investors await Canadian GDP data for July and the US JOLTS Job Openings data for August.

The US Dollar (USD) is up 0.12% at around 1.4190 against the US Dollar (USD) during the European trading session on Tuesday. The Loonie pair trades higher as the US Dollar outperforms, with financial markets becoming increasingly confident that the Federal Reserve (Fed) will deliver two more interest rate hikes this year.

US Dollar Price Today

The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Australian Dollar.

USDEURGBPJPYCADAUDNZDCHF
USD0.18%0.14%-0.02%0.09%0.40%0.25%0.16%
EUR-0.18%-0.05%-0.20%-0.11%0.22%0.06%-0.03%
GBP-0.14%0.05%-0.17%-0.03%0.25%0.11%0.01%
JPY0.02%0.20%0.17%0.11%0.40%0.24%0.15%
CAD-0.09%0.11%0.03%-0.11%0.29%0.14%0.06%
AUD-0.40%-0.22%-0.25%-0.40%-0.29%-0.15%-0.24%
NZD-0.25%-0.06%-0.11%-0.24%-0.14%0.15%-0.08%
CHF-0.16%0.03%-0.01%-0.15%-0.06%0.24%0.08%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).

As of writing, the US Dollar Index (DXY), which gauges the Greenback’s value against six major currencies, trades 0.16% higher to near 101.35.

The CME FedWatch tool also shows a 60% probability of the Fed delivering a quarter-to-a-percent interest rate hike in both policy meetings remaining this year.

Later in the day, investors will focus on the Canadian monthly Grioss Domestic Product (GDP) data for July and the United States (US) JOLTS Job Openings data for August.

Economists expect the Canadian economy to have remained flat after expanding 0.3% in June.

The US Job Openings report will likely show that US employers posted 7.23 million fresh jobs, marginally lower than 7.271 million in July.

USD/CAD Technical Analysis

In the daily chart, USD/CAD trades at 1.4190, extending its advance well above the 20-period exponential moving average (EMA) at 1.4016 and reinforcing a bullish near-term bias. The pair has pushed into overbought territory, with the 14-period Relative Strength Index (RSI) at 75.45, which suggests that while buyers remain in control, the risk of a corrective pullback is rising as the latest leg higher stretches away from its dynamic support.

On the downside, immediate support is located at the 20-period EMA around 1.4020, where a deeper retracement could find underlying demand and preserve the broader positive structure as long as price holds above this level. With no clearly defined resistance levels in the current dataset, any further topside extension would be driven by momentum, though the elevated RSI hints that fresh gains from here could be more gradual and vulnerable to short-term consolidation phases.

(The technical analysis of this story was written with the help of an AI tool. Know more.)

Economic Indicator

Gross Domestic Product (MoM)

The Gross Domestic Product (GDP), released by Statistics Canada on a monthly and quarterly basis, is a measure of the total value of all goods and services produced in Canada during a given period. The GDP is considered as the main measure of Canadian economic activity. The MoM reading compares economic activity in the reference month to the previous month. Generally, a high reading is seen as bullish for the Canadian Dollar (CAD), while a low reading is seen as bearish.

Read more.

Next release: Tue Sep 29, 2026 12:30

Frequency: Monthly

Consensus: 0%

Previous: 0.3%

Source:

Author

Sagar Dua

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

More from Sagar Dua
Share:

Editor's Picks

AUD/USD seems vulnerable near 0.6800, 10-month low amid bullish USD

AUD/USD languishes near a 10-month low during the Asian session on Friday, awaiting a break below 0.6800 before the next leg up amid a bullish US Dollar. Firming Fed rate-hike expectations, along with fading hopes for US-Iran diplomacy, help the USD hold gains at its highest level since April 2025. Moreover, the RBA’s dovish tilt undermines the Aussie and backs the case for further losses.

USD/JPY bulls turn cautious near 160.00 amid intervention risks

USD/JPY enters a bullish consolidation phase around its highest level since early September as bulls turn cautious amid intervention risk near 160.00. Meanwhile, the downside seems cushioned as the wide US-Japan interest rate gap keeps the Yen carry trade active. Furthermore, the possibility of a jumbo Fed rate hike and Middle East uncertainties hold the US Dollar near a 19-month top, supporting the currency pair.



Gold advances marginally; still below $3,900

Gold attempts a mild bounce and approaches the $3,900 region per troy ounce at the end of the week. The marginal recovery in the precious metal comes on the back of a vacillating mood surrounding the US Dollar along with mixed US Treasury yields following the release of US October Producer Prices.

Bitcoin just posted five straight losing weeks, and the storm may not be over yet

Bitcoin is struggling to find support, slipping below $70,000 as multiple headwinds threaten to push the Crypto King lower. The much-anticipated “Uptober” rally failed to materialize, with persistent selling pressure and widespread liquidations instead reinforcing the “Rektober” narrative.

Week ahead – Fed Minutes, inflation data and Nvidia earnings to guide investors

Fed minutes may add to hawkish tone as bets of 50-bps hike grow. Nvidia to report earnings as bar to impress high after spy scandal. Trade and geopolitics to be focal point of Trump-Xi summit.

Gold hit its lowest level of 2026 near $3,850
Gold (XAU/USD) attempts to stabilize around $3,890 on Friday after falling to $3,852 on Thursday, its lowest level since October 2025. The precious metal has lost more than 4% this week, as investors increasingly anticipate further monetary tightening from the Federal Reserve (Fed). The latest decline reflects a sharp change in market expectations.