National Bank of Canada (NBC) discusses USD/CAD, noting the pair has been consolidating and may remain range-bound. The bank highlights that recent moves reflect shifting expectations for Federal Reserve and Bank of Canada policy. Their analysis suggests limited directional conviction, with USD/CAD likely to oscillate within established technical levels over the coming days.

USD/CAD seen consolidating in range

"The USD/CAD pair has been trading sideways in recent sessions, reflecting a lack of clear directional catalysts as markets reassess the relative policy outlooks of the Federal Reserve and the Bank of Canada."

"We continue to expect USD/CAD to trade within a broad range in the near term, with upside limited by resistance near recent highs and downside supported by demand on dips."

"A sustained break outside of this range would likely require a material shift in interest rate expectations or a significant move in oil prices, neither of which appears imminent at this stage."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)