The Canadian Dollar strengthened significantly against the US Dollar on Tuesday, pushing the USD/CAD pair lower. The exchange rate reversed its earlier gains to trade around 1.4008, placing it near two-week lows as the Greenback faced broad selling pressure. The pair extended its losses following the release of key economic data from the United States.
Soft US labor market data heightened expectations that the Federal Reserve may move to cut interest rates sooner than anticipated. This weakened the USD broadly, allowing the commodity-linked Loonie to capitalize. The currency pair's decline reflects a shift in market sentiment as traders reassess the divergence between US and Canadian monetary policy outlooks.
The USD/CAD is now testing significant technical support levels. A sustained break below could open the door for further losses toward the 1.3950 handle, with traders closely monitoring upcoming economic releases for further direction on central bank policy.
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Data Source: GrowingPool Analysis Team Updated: 2025-11-11 16:53
Disclaimer: This article is for reference only and does not constitute investment advice. Forex trading involves risks; please make decisions carefully.