With the U.S. Federal Reserve poised to keep rates steady and the Bank of Canada expected to maintain its dovish stance, traders are eyeing a potential reversal in the USD/CAD pair after a recent rally to 1.3698. While the dollar remains firm, the Canadian dollar has been pressured by a slump in key commodity prices.
Gold climbed to $4,017.80, up 22.17 points or 0.55%, as investors sought safe‑haven assets. Silver followed suit, trading at $54.163, a gain of 0.214 or 0.40%. Energy markets were softer: WTI crude fell to $100.72, down 2.55 or 2.47%, and Brent slipped to $109.46, down 2.24 or 2.01%. Base metals saw mixed moves – copper edged up to $6.5148 (+0.0073, +0.11%) and aluminium rose to $3,059.50 (+12.20, +0.40%). Natural gas slipped to $3.026, a decline of 0.024 or 0.79%.
The confluence of a tightening U.S. policy outlook, a relatively dovish Canadian stance, and falling commodity prices keeps the USD/CAD on a knife‑edge. Market participants will be watching the next policy meetings for clues that could trigger a reversal in the Canadian dollar’s recent weakness.
