USD/CAD Takes Four Consecutive Bullish Sessions Amid Fed Rate Hike Expectations

The Canadian dollar has been under pressure in recent trading sessions due to a stronger U.S. dollar, resulting in four consecutive bullish sessions for USD/CAD, with gains of over 1% in favor of the greenback.

This move is attributed to growing expectations that the Federal Reserve may adopt a more aggressive stance in the near term, which has strengthened demand for U.S. dollars and contributed to the Canadian dollar's struggles.

The Federal Reserve's potential rate hike has increased interest rates in the U.S., making USD-denominated investments more attractive and widening the policy gap between the Fed and the Bank of Canada.