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HomeMarketingIn light of heavy dollar selling, the USD/CAD price is expected to...

In light of heavy dollar selling, the USD/CAD price is expected to decline

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The Canadian dollar is the currency of Canada. The CAD is broken down into 100 cents. It’s a fairly stable currency and it trades in a narrow range with small fluctuations day today. This makes it an attractive place for investments, but on occasion, there are large swings in the exchange rate due to significant occurrences in the global economy. In light of this heavy dollar selling, the USD/CAD price is expected to decline more after yesterday’s 3% drop.

There was a sizeable amount of USD/CAD selling yesterday because the Canadian dollar has been, and remains a haven currency. It’s often used in times of financial uncertainty because it’s seen as a stable currency. On top of that, there’s also speculation that interest rates may increase in Canada while they’re likely to remain low in the US. These factors have all contributed to its status as a safe haven among investors.

USD/CAD PRICE PREDICTION:

The Canadian dollar price is expected to decline due to the heavy USD/CAD selling. This can be viewed as an indication that the Canadian economy, which had good numbers in January, will not continue to grow. Moreover, after yesterday’s 3% drop in USD/CAD exchange rates, it may be seen as a sign of bullish investor sentiment fading away. These factors have prompted selling in the trading session and hence are a reason for the profit-taking that has occurred.

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There is a chance of a few steps larger than the 3% but overall it will be far lower than that, meaning that the long-term trend is still up. We are expecting a drop to begin at around 1.20 as this level is considered to support and where prices have been trading for an extended period of time now. A price drop of more than 10% can be expected in this situation yet if oil prices stabilize at around $26-$28 per barrel, there’s less reason for investors to panic.

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USD/CAD EXCHANGE RATES:

The Canadian dollar is the currency of Canada. The CAD is broken down into 100 cents. It’s a fairly stable currency and it trades in a narrow range with small fluctuations day today. This makes it an attractive place for investments, but on occasion, there are large swings in the exchange rate due to significant occurrences in the global economy. In light of this heavy dollar selling, the USD/CAD price is expected to decline more after yesterday’s 3% drop. There was a sizeable amount of USD/CAD selling yesterday because the Canadian dollar has been, and remains a haven currency.

It’s often used in times of financial uncertainty because it’s seen as a stable currency. On top of that there’s also speculation that interest rates may increase in Canada while they’re likely to remain low in the US. These factors have all contributed to its status as a safe haven among investors. The heavy drop seen overnight is an indication that bullish investor sentiment may have diminished in light of oil prices not being able to rebound. US crude oil prices declined 3% overnight and are now under $32 per barrel.

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