The dollar rose primarily due to its safe-haven status. Canada’s consumer price index experienced a year-over-year increase of 4.4% in April. Markets now indicate a nearly 50% likelihood of a BOC rate increase by July. Today’s USD/CAD forecast is bullish. On Wednesday, the dollar strengthened primarily due to the potential risk of a US debt default. Additionally, traders adjusted their expectations of immediate Fed rate cuts following encouraging consumer spending data in the United States. –Are you interested in learning more about day trading brokers? Check our detailed guide- On Tuesday, the Canadian dollar remained mostly unchanged against the US dollar, but it fared better than most other G10 currencies. This was due to stronger-than-anticipated domestic inflation data, which prompted investors to speculate on the possibility of an additional rate hike by the Bank of Canada. Canada’s consumer price index experienced a year-over-year increase of 4.4% in April, following a 4.3% rise in March. This marked the first increase in 10 months, surpassing analysts’ expectations of a drop to 4.1%. Given the persistently high inflation and indications of renewed growth in the Canadian housing market, the Bank of Canada might not be able to lower interest rates this year. Since January, the central bank has maintained its benchmark rate at a 15-year high of 4.50%, halting its tightening campaign. Previously, money markets had anticipated a prolonged period of stable monetary policy, potentially followed by a shift toward rate cuts before the end of 2023. However, the current sentiment has shifted, with markets indicating a nearly 50% likelihood of a rate increase by July. USD/CAD key events today Today investors will watch the crude oil inventories, and US building permits reports. The crude oil inventories report will impact the Canadian dollar by showing the state of oil demand in the US. Get FREE Forex Signals Now! USD/CAD technical forecast: 30-SMA spurs bullish momentum USD/CAD technical forecast chart The bias for USD/CAD in the 4-hour chart is bullish. The price bounces higher after a failed attempt to break below the 30-SMA. This puncture also saw the RSI cross below 50 but is now back above, pointing to solid bullish momentum. –Are you interested to learn more about low spread forex brokers? Check our detailed guide- The next step in this bullish move is retesting the 1.3550 resistance level. With enough momentum, bulls might break past 1.3550 to retest the 1.3650 resistance. This move would make a higher high and strengthen the bullish bias. Looking to trade forex now? Invest at eToro! Trade Forex Now! 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Saqib Iqbal Saqib Iqbal Saqib Iqbal is a market analyst, prop fund trader and mentor, serving the industry with his analysis and educational content since 2011. The author has great exposure to different financial markets and institutions. He's well-known for his day trading reviews and multiple timeframe analysis. View All Post By Saqib Iqbal Majors share Read Next AUD/USD Forecast: RBA’s Pause Likely After Downbeat Jobs Saqib Iqbal 3 weeks The dollar rose primarily due to its safe-haven status. Canada's consumer price index experienced a year-over-year increase of 4.4% in April. Markets now indicate a nearly 50% likelihood of a BOC rate increase by July. Today’s USD/CAD forecast is bullish. On Wednesday, the dollar strengthened primarily due to the potential risk of a US debt default. Additionally, traders adjusted their expectations of immediate Fed rate cuts following encouraging consumer spending data in the United States. -Are you interested in learning more about day trading brokers? Check our detailed guide- On Tuesday, the Canadian dollar remained mostly unchanged against the US… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.