The USD/CAD pair is expected to see some volatility in the coming week as both the Federal Reserve and the Bank of Canada have recently cut interest rates. This move signals a race between the two central banks to stimulate their respective economies.
The Fed’s decision to cut rates has put pressure on the US dollar, causing it to weaken against its Canadian counterpart. This has led to a rise in the USD/CAD pair, which is now trading at higher levels than before the rate cut.
Investors will be closely watching economic data releases and central bank announcements for any further hints on future interest rate cuts. The uncertainty surrounding global trade tensions and geopolitical issues could also impact the direction of the USD/CAD pair.
Overall, the outlook for the USD/CAD pair remains uncertain as both central banks continue to monitor economic conditions and make decisions based on the data available to them. Traders should stay informed and be prepared for potential fluctuations in the currency pair.