What you need to know:
1
Many of the bearish arguments for the US dollar have faded over the last couple of months, causing us to raise our USD/CAD forecast profile.
2
Capital inflows continue to lend support to the greenback, led in part by AI related growth.
3
The US dollar has also become more of a safe haven asset in response to the Iran conflict.
4
The greenback has served as a high yielder in the G10 space, with yield differentials providing support and keeping hedging costs elevated for foreign investors.
5
Finally, the market repricing of Fed expectations over the last three months served as the final straw to push USD/CAD above some key resistance levels.
For the trading range:
USD/CAD
Buyers
1.3900/1.4000
Sellers
1.4300/1.4400
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