USD/CAD remains capped below 1.3600 ahead of BoC rate decision

USD/CAD loses ground around 1.3575 despite the rebound of USD.
US ISM Services PMI arrived at 52.7 in November vs. 51.8 prior, above the market consensus.
Bank of Canada (BoC) to hold interest rate steady at 5.0% at its December meeting.
US ADP Employment Change, BoC monetary policy meeting will be in the spotlight on Wednesday.

Lallalit Srijandorn FXStreet

The USD/CAD pair snaps the two-day winning streak during the early European session on Wednesday. The pair remains capped under the 100-day Exponential Moving Average (EMA) around 1.3600. The pair attracts some sellers despite the recovery of the US Dollar (USD) Index. USD/CAD currently trades near 1.3575, down 0.12% on the day.

The US data on Tuesday revealed that the ISM Services PMI came in at 52.7 in November from 51.8 in the previous reading, better than the market expectation of 52.0. Meanwhile, the US JOLTS labor data on Tuesday was worse than expected. The US job openings data, as measured by the Job Openings and Labour Turnover Survey (JOLTS) fell by 617,000 to 8.733M in October. This report indicated that US labor market conditions are loosening further.

The Federal Reserve (Fed) maintains its stance while saying that the possibility of additional policy tightening cannot be ruled out. However, market participants believe that the Fed is done with the hiking cycle and will begin cutting the rate in March next year. This, in turn, might cap the upside of the US Dollar and act as a headwind for the USD/CAD pair.

On the Loonie front, the Bank of Canada (BoC) will announce its interest rate decision on Wednesday. BoC governor Tiff Macklem said that higher interest rates have cooled the overheated economy and taken the steam out of inflation. Macklem believes the central bank may have done enough to tame inflation but BoC will raise rates again if inflation persists. The markets anticipate the BoC to hold the interest rate steady at 5.0% at its December meeting.

Meanwhile, a rebound in oil prices might lift the commodity-linked Loonie, as the country is the leading oil exporter to the US.

Market players will monitor the US ADP Employment Change and Unit Labor Costs (Q3). The attention will shift to the BoC interest rate decision later on Wednesday. These events could trigger volatility in the market and give a clear direction to the USD/CAD pair.

USD/CAD

Overview
Today last price	1.3573
Today Daily Change	-0.0019
Today Daily Change %	-0.14
Today daily open	1.3592

Trends
Daily SMA20	1.3674
Daily SMA50	1.3688
Daily SMA100	1.3571
Daily SMA200	1.3517

Levels
Previous Daily High	1.3593
Previous Daily Low	1.3534
Previous Weekly High	1.3661
Previous Weekly Low	1.3487
Previous Monthly High	1.3899
Previous Monthly Low	1.3541
Daily Fibonacci 38.2%	1.3571
Daily Fibonacci 61.8%	1.3557
Daily Pivot Point S1	1.3554
Daily Pivot Point S2	1.3515
Daily Pivot Point S3	1.3495
Daily Pivot Point R1	1.3612
Daily Pivot Point R2	1.3632
Daily Pivot Point R3	1.3671

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

AUD/USD bulls regain control above 0.6950 amid USD retreat

AUD/USD regains traction and extends the previous day's bounce from the weekly low, aiming for 0.7000 in Asia on Friday. The overnight pullback in US bond yields keeps the US Dollar below an 18-month high, which in turn offers some support to the pair. Meanwhile, hawkish RBA expectations also keep the major underpinned.

USD/JPY holds gains near 158.00 after Japan's weak Household Spending data

USD/JPY clings to gains around 158.00 after data showed on Friday that Japan's Household Spending fell for the ninth straight month, undermining the Japanese Yen. Meanwhile, the US Dollar remains depressed as the overnight fall in US bond yields counters a hawkish Fed and geopolitical uncertainties, could cap any downside in the pair.

Gold remains range-bound below $4,200

Gold has given up some ground after an initial bullish attempt to reach weekly highs, returning to below the $4,200 mark per troy ounce on Friday. The US Dollar’s strong upside momentum, combined with rising US Treasury yields across the curve, seems to keep further gains in the yellow metal under scrutiny.

Has Bitcoin really escaped the macro forces it was built to fight?

Over 17 years ago, Satoshi Nakamoto designed Bitcoin (BTC) on the back of a global financial crisis as an alternative to the global monetary system outside the control of central banks, governments and traditional intermediaries. This raises a key question: has Bitcoin really become independent of the macroeconomic forces it was built to challenge?

The Euro is not the sick man of Europe. France's bond market is

EUR/USD remains under pressure, near the 17-month low of 1.1161 reached on Monday. The pair has lost more than 7% since its yearly peak, as concerns over France's public finances increasingly weigh on the single currency. But behind the weakness of the Euro (EUR), the problem does not necessarily lie with the European economy as a whole.

The UK 30-year gilt just hit a 1998 high. Is that good or bad for the British Pound?

The yield on the UK's 30-year government bond, or gilt, went through 6% on October 1 for the first time since early 1998, and on Monday the Pound was at its strongest against the Euro since June 2025. The gilt market's 28-year high is mostly someone else's. Since early May, the 30-year gilt yield has risen about 0.15 of a percentage point and the US 30-year about 0.7.