The US dollar has initially fallen against the Canadian dollar to kick off the week on Monday but turned around to show signs of life again with that being said I think you’ve got a situation where traders are going to continue to be very uh cautious but I also think that short-term pullbacks probably offer buying opportunities that people are willing to get involved at the 1.39 level below should end up being support, just as the 1.40 level above should offer resistance. I think at this point, we’re trying to determine whether or not we can actually take out the 1.40 level. Breaking above there opens up a move all the way to 1.4250, and I think that eventually happens. Quite frankly, the economic data in Canada is horrible. They actually lost jobs in August, and at this point, despite the fact that the Federal Reserve is likely to cut rates, let’s be honest here.
USD/CAD Forecast: US Dollar Continues to Pressure the Canadian Dollar on Monday – 07 October 2025
