Account

New to ADSS? Open an
account now to get started.

OR

Already have an account?

Add funds to your ADSS account

Account

New to ADSS? Open an
account now to get started.

Add funds to your ADSS account

Trends & Analysis
News

Gold surges amid US-Iran deal prospects

News

Dow hits record closing high on US-Iran peace deal hopes

News

Nvidia’s stock dips despite Q1 beat, strong forecast

News

CAD falls versus USD following inflation data

News

Gold rises as Trump postpones Iran attack

News

Crude oil surges amid stalled US-Iran peace talks

Trends & Analysis
News

Gold surges amid US-Iran deal prospects

News

Dow hits record closing high on US-Iran peace deal hopes

News

Nvidia’s stock dips despite Q1 beat, strong forecast

News

CAD falls versus USD following inflation data

News

Gold rises as Trump postpones Iran attack

News

Crude oil surges amid stalled US-Iran peace talks

Breadcrumb navigation close

Asset Watch

Has the CAD rally run its course?

Wednesday, July 4, 2023

Following several months of decelerating year-over-year (YoY) inflation increasing investors’ optimism, volatility has largely gone missing across the financial markets. Risk-on assets have outperformed their risk-off counterparts, however, with base effects ending after the June CPI data is released on Jul. 12, U.S. inflation could become problematic again and help flip the script.
If so, the Canadian dollar could be on the defensive, and it would be the greenback’s time to shine. From a technical perspective, the setup is quite constructive. The USD/CAD bounced off its weekly rising support line (the grey line), which halted four-straight weeks of losses.

The currency pair’s 100-week moving average acted as resistance during the December 2021 and February/March 2022 rallies, while the August 2022 drawdown ended near the key level. More importantly, the USD/CAD’s 100-week MA is only slightly below the rising support line and provides another layer of defence for the bulls.

Q1 U.S. real GDP was revised upward from 1.3% to 2% on Jun. 29, and the Atlanta Fed expects Q2 real GDP to come in at 1.9% (updated on Jul. 3). U.S. economic growth remains resilient, and the fundamental strength gives the Fed more leeway to raise interest rates. As a result, continued hawkish policy should be bullish for the currency pair.

Could the USD/CAD retest its recent highs near 1.365, or will a breakdown below 1.305 be the next major move?


© ADSS 2026


Investing in CFDs involves a high degree of risk that you will lose your money due to the use of leverage, particularly in fast moving markets, where a relatively small movement in the price can lead to a proportionately larger movement in the value of your investment. This can result in loses that exceed the funds in your account. You should consider whether you understand how CFDs work and you should seek independent advice if necessary.

ADS Securities L.L.C – S.P.C (“ADSS”), a limited liability company – sole proprietorship company incorporated under United Arab Emirates law. Registered under Commercial License No.1190047. ADS Securities L.L.C S.P.C is regulated and authorised in the UAE by the Capital Market Authority (CMA) under Category 1 License No.305027 (Trading Broker, Trading and Clearing Broker, Trading Broker in the International Markets, Trading Broker of OTC Derivatives and Currencies in the Spot Market, Financial Products Dealer) and Category 5 License No.20200000217 (Introduction). Registered Office: 8th Floor, CI Tower, Corniche Road, P.O. Box 93894, Abu Dhabi, United Arab Emirates.

The information presented is not directed at residents of any particular country outside the United Arab Emirates and is not intended for distribution to, or use by, any person in any country where the distribution or use is contrary to local law or regulation.

ADSS is an execution only service provider and does not provide advice. ADSS may publish general market commentary from time to time. Where it does, the material published does not constitute advice, or a solicitation, or a recommendation to a transaction in any financial instrument. ADSS accepts no responsibility for any use of the content presented and any consequences of that use. No representation or warranty is given as to the completeness of this information. Anyone acting on the information provided does so at their own risk.