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USD/CAD rises as US shutdown resolution boosts USD, firm CAD limits upside

USD/CAD advances toward 1.4030 on Tuesday at the time of writing, up 0.10% for the day. The move reflects growing optimism over an imminent resolution of the US government funding deadlock, while investors await fresh US employment data.

🔗 Source

💡 DMK Insight

USD/CAD’s rise to 1.4030 signals a shift in market sentiment amid funding talks. The 0.10% gain today reflects optimism about a potential resolution to the US government funding deadlock, which could stabilize the dollar. Traders should keep an eye on the upcoming US employment data, as strong figures could further bolster the USD, pushing USD/CAD higher. Conversely, any disappointing data might trigger a quick reversal, especially if the pair approaches resistance around 1.4050. Given the current price, a breakout above this level could attract more bullish momentum, while a failure to hold above 1.4000 might lead to profit-taking. It’s also worth noting that this optimism could ripple through other USD pairs, impacting assets like gold and oil, which often move inversely to the dollar. Keep your charts ready for volatility as these economic indicators drop, especially in the next 24 to 48 hours.

📮 Takeaway

Watch for USD/CAD to test 1.4050; strong US employment data could push it higher, while weak data might trigger a pullback.

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