Loonie Faces Resistance as USD/CAD Rebound Hits Key Hurdle

Societe Generale strategists believe that USD/CAD has reached a key resistance zone at 1.3990/1.4030, following its rebound from 1.3730.

They argue that if the pair fails to break above this area, it could keep the broader decline intact, with 1.3840 as initial support.

The Bank of Canada is expected to leave rates unchanged, while inflation and growth projections support a patient stance.

However, renewed US-Canada tariff tensions could inject a more hawkish tone into the outlook.