The USD/CAD pair remains firmly positioned above 1.4050 as investors await key US retail sales data, expected to provide clearer direction on the greenback’s next move. The Canadian dollar holds steady, absorbing pressure from a resilient US dollar while grappling with uncertainty surrounding Canada’s economic outlook.
With the Federal Reserve’s monetary policy under continued scrutiny, retail sales data is seen as a critical indicator of consumer resilience amid rising borrowing costs. A robust report could bolster the USD/CAD pair by fueling expectations of further interest rate hikes, while softer data might allow the loonie some breathing room. For now, traders maintain cautious positions, closely watching US economic signals to navigate potential currency volatility.
