USD/CAD Breaks Key Level, Targets 1.4050-1.4125

The Canadian Dollar remained relatively stable despite comments from Bank of Canada Governor Tiff Macklem. His statements aligned with the latest policy statement, which weighs trade tensions against persistent price pressures.

According to VT Markets, USD/CAD was pressing resistance and had broken through a key Fibonacci retracement level at 1.3990. This sets up targets at 1.4050 and 1.4125, corresponding to the 61.8% and 76.4% retracement levels.

With inflation around 3%, a weaker CAD could add marginal inflation risk. However, the Bank of Canada generally treats foreign-exchange pass-through as delayed and limited. The currency's declines since early September have been contained.