USD/CAD Jumps to Weekly High Near Mid-1.3800s Ahead of FOMC Minutes

USD/CAD Jumps to Weekly High Near Mid-1.3800s Ahead of FOMC Minutes

The USD/CAD currency pair continued its upward momentum for the third consecutive day on Wednesday, climbing from a recent low of 1.3685 — its lowest level since October 2024 — to trade near the weekly high around 1.3835-1.3840. This roughly 0.30% gain is supported by modest appreciation in the US Dollar amid positive economic data that eased recession concerns.

The US Dollar Index (DXY) also sustained its overnight gains following Tuesday’s upbeat US economic releases, providing additional support for the USD/CAD pair. However, despite the bullish momentum, market participants remain cautious due to growing concerns over US fiscal health and expectations that the Federal Reserve will continue to lower interest rates throughout 2025.

Traders are awaiting the upcoming release of the Federal Open Market Committee (FOMC) meeting minutes, which could provide clearer guidance on the Fed’s future rate-cut strategy. Until then, many investors are hesitant to take aggressive positions, keeping the currency pair’s upside potential in check.