USD/CAD Rally May Accelerate Above June Highs
The USD/CAD currency pair has shown resilience after weaker-than-expected US jobs data, and analysts believe it could continue to rally. The June highs around 1.4250 remain a hurdle for renewed momentum, but the bullish trend is still in place. According to Fawad Razaqzada, Market Analyst at FOREX.com, the Fed's focus on inflation rather than employment has kept the dollar strong.
The recent surge in oil prices has also contributed to higher yields and pressure on bond markets, making a sustained dollar decline harder to argue for. The US CPI release on October 14 will be an important indicator of inflation trends, but until then, the bullish lean remains conditional rather than confirmed.
From a technical analysis perspective, the USD/CAD pair has shown significant strength with minimal pullbacks along the way. The June highs at 1.4250 still need to be overcome for renewed momentum, but if the bullish trend continues, round handles at 1.4300 and 1.4400 could come into view.