The Usdcad Pair Is Declining Due To The Anticipation Of Aggressive Rate Cuts By The Us Federal Reserve Which Could Hurt The Us Dollar Against Its Canadian Counterpart

USDCAD Targets Critical Support as Canada's Trade Balance Surges

The USDCAD pair is declining due to the anticipation of aggressive rate cuts by the US Federal Reserve, which could hurt the US dollar against its Canadian counterpart.

Immediate support is at 13740 with the 100-day and 200-day moving averages providing additional support at 13680 and 13650.

The USDCAD pair is declining due to the anticipation of aggressive rate cuts by the US Federal Reserve. This could hurt the US dollar against its Canadian counterpart.

Immediate support is at 13740 with the 100-day and 200-day moving averages providing additional support at 13680 and 13650.

However, a break below these support levels could lead to further declines in the USDCAD pair.

Canada's trade balance surged in May, beating expectations and adding to the positive outlook for the Canadian dollar.

The trade surplus rose to C$3.8 billion in May, up from C$2.6 billion in April and well above the C$2.0 billion forecast by economists.

The increase was driven by a rise in exports, which jumped by 6.5% to C$57.8 billion, the highest level since November 2018.

The surge in exports was led by energy products, which rose by 14.1% to C$20.5 billion.

The positive trade balance data is a further boost to the Canadian dollar, which has been strengthening against the US dollar in recent weeks.