The BoC has increased interest rates by 350bps in just seven months. Many are pleading with the BoC to ease up on rate hikes as consumers suffer. The Fed will likely maintain its aggressive policy as there are signs inflation pressure is still present. Today’s USD/CAD outlook is bullish as recession worries in Canada weaken the Canadian dollar. Although Canada’s headline inflation rate has decreased from a peak of 8.1% to 6.9%, food prices are still rising, and price pressures are still present. The Bank of Canada (BoC) has increased interest rates by 350 basis points in just seven months. -Are you looking for automated trading? Check our detailed guide- As a result, Canadian consumers and small businesses are being squeezed on all sides. Politicians, unions, and even some economists are pleading with the central bank to ease up on its tightening. Last week, the bank increased rates by 50 basis points to a new 14-year high, indicating that its tightening campaign was almost at its pinnacle but still ongoing. With its expensive housing market and highest G7 consumer debt levels, Canada is particularly vulnerable to interest rate increases. There are growing concerns that the BoC’s aggressive rate increases may lead to a recession. Tiff Macklem, the governor of the Bank of Canada, said on Sunday that he sees no threat to the bank’s independence, even though it is the subject of intensive scrutiny. On the other hand, the dollar rose on Monday after solid consumer spending data showed continuing underlying inflation pressure. It has reduced speculation that the US Federal Reserve will slow down its aggressive drive to tighten monetary policy. USD/CAD key events today The pair will likely consolidate as there won’t be significant news releases from the US or Canada. Get FREE Forex Signals Now! USD/CAD technical outlook: Bulls win the battle for control at the 30-SMA resistance The 4-hour chart shows the price trading above the 30-SMA and the RSI above 50. After a period of equal strength at the 30-SMA, bulls have taken control. The price fell to 1.3501, and bears could not push it lower. Bulls took over, taking the price back to the 30-SMA, where it paused. -If you are interested in forex day trading then have a read of our guide to getting started- The price was caught between the 30-SMA and the 1.3600 key level for some time, where there was a battle for control. The bulls won, and the price will likely climb to 1.3750 resistance. 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 GBP/USD Outlook: Contracting Economy Raises Probability of Dovish BoE Saqib Iqbal 1 month The BoC has increased interest rates by 350bps in just seven months. Many are pleading with the BoC to ease up on rate hikes as consumers suffer. The Fed will likely maintain its aggressive policy as there are signs inflation pressure is still present. Today's USD/CAD outlook is bullish as recession worries in Canada weaken the Canadian dollar. Although Canada's headline inflation rate has decreased from a peak of 8.1% to 6.9%, food prices are still rising, and price pressures are still present. The Bank of Canada (BoC) has increased interest rates by 350 basis points in just seven months.… 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.