The USD/CAD pair is expected to see bullish movement in the upcoming week due to the divergence in monetary policies between the Federal Reserve and the Bank of Canada. The Fed’s decision to taper its bond-buying program while the BoC maintains its accommodative stance has sparked bullish sentiment among traders.
Investors are closely monitoring the economic data releases from both countries, with a particular focus on inflation and employment figures. Positive data from the US could further strengthen the USD against the CAD.
Technical analysis also supports a bullish outlook for the USD/CAD pair, with key resistance levels being tested and potential breakout opportunities on the horizon.
Overall, the Fed-BoC policy divergence is likely to continue driving bullish momentum for the USD/CAD pair in the coming week. Traders should keep a close eye on economic data releases and technical indicators to capitalize on potential trading opportunities.