Canadian Dollar Stabilizes Below Key Resistance Amid Rebounding Oil Prices
The Canadian Dollar has stabilized below the key resistance level of 1.4050 against its US counterpart, despite rebounding oil prices providing some support for the commodity-linked currency.
The USD/CAD pair is trading in a narrow range around 1.4020-1.4040, with the rebound in crude oil prices contributing to the Canadian Dollar's stability. West Texas Intermediate (WTI) crude rose approximately 1.2% on the day, recovering from recent lows as supply concerns resurfaced.
The upside for the Canadian Dollar remains capped by a resilient US Dollar, which is supported by expectations that the Federal Reserve will keep interest rates higher for longer. The US Dollar Index (DXY) is holding near 104.50, reflecting persistent inflation concerns and robust US economic data.