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USD/CAD having a very close look at 1.44 this morning

The Canadian dollar is very much in the spotlight leading into next year. We saw how the Bank of Canada got in front on the Fed on December 11, when they slashed their OCR to 3.25% from 3.75%. Then came the hawkish hold from the Fed last week and both moves have come to underpin the USD/CAD since. The USD/CAD peaked at 1.4447 on December 19 and since then the price action has been characterised by a series of lower highs (1.4436 December 20 and 1.4433 yesterday). The fall yesterday was the US dollar drop to 1.4349 ahead of a close last night, at 1.4371. However, this morning the US dollar is edging back towards that 1.44 handle this morning. It remains to be seen if it will push above 1.4433 today and given where we are in the calendar that might be a tough ask. However, looking forward to next year and the prospect of significant trade tariffs from the US, the topside is still in the spotlight for the US currency. Beyond the recent highs, the 2020 highs at 1.4559 and then at 1.4668 could be very much in focus next year. We shall see on that in due course. Right now the USD/CAD is at 1.4398
 

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