USD/CAD Edges Higher Ahead of Powell's Testimony and US Housing Data

USD/CAD Edges Higher Ahead of Powell's Testimony and US Housing Data

The USD/CAD currency pair is gradually pushing higher on Wednesday, trading around 1.3750, as markets brace for fresh macroeconomic insights from both the US New Home Sales report and Federal Reserve Chair Jerome Powell’s testimony.

Market Eyes Powell’s Second Day of Testimony

Fed Chair Jerome Powell is scheduled to continue his semiannual testimony before the Senate Banking Committee, where he is expected to address persistent inflation concerns, tariff impacts, and the outlook for US interest rates. His remarks could be key in shaping short-term USD expectations, especially if any shift in tone occurs.

US New Home Sales Could Move the Dollar

At 14:00 GMT, the US Census Bureau will release May’s New Home Sales data, expected at 690,000 units, following April’s surge to 743,000 units. This release will provide fresh insight into the US housing market, which plays a critical role in assessing the economy’s resilience amid inflation and tariff effects.

Loonie Sensitivity to Risk and US Data

The Canadian Dollar (CAD) remains vulnerable to shifts in global risk sentiment and US economic news, given Canada's trade dependency. A hawkish Powell or stronger-than-expected US housing data could lift the Greenback further against the Loonie, potentially pushing USD/CAD beyond recent resistance levels.

For further analysis, visit our full USD/CAD forecast section.