The US dollar fluctuated against the Canadian dollar on Thursday, with the 1.37 level being closely watched. A break above this level could potentially lead to a move towards 1.3850 or even 1.39. The Bank of Canada has cut rates, indicating potential further cuts due to challenges in the Canadian economy, particularly in the housing market. This may result in the US dollar gaining strength over the Canadian dollar. The interest rate differential between the two countries is widening, favoring the USD. The Canadian economy is closely tied to the US economy, making it vulnerable to any struggles in the US. The oil market’s volatility could also impact the Canadian dollar. Despite the market noise, buyers may step in during pullbacks, pushing the USD/CAD pair towards 1.39 in the summer.