USD/CAD dropped sharply to 1.3818, retreating through critical support near 1.3930. A broad-based dollar decline coupled with resilient crude oil prices supported the Canadian dollar. The looming risk of fiscal expansion without sufficient offsetting revenue in the U.S. has discouraged further USD exposure.
Technically, the pair’s rejection from the 1.3960–1.3980 zone has been confirmed by a break beneath the 50-period SMA, with sellers extending control into the 1.3800 region. Continued CAD demand reflects market appetite for commodity-linked currencies over dollar-based assets.
