USD/CAD steps back from a new 2026 high

The charge higher in the dollar since Wednesday evening and the hawkish Fed hold was not just confined to the likes of the EUR/USD, GBP/USD and the USD/JPY. That is because the commodity currencies all fell back too. 

In respect of the Dollar index components that concerns the CAD. The AUD and the NZD are not dollar index components. The CAD is and it is the fourth largest, accounting for 9.1% of the index value. 

So, anyway the USD/CAD further extended its push above 1.40 yesterday and reached as high as high as 1.4147 ahead of a US close, at 1.4136. Earlier today it extended that move higher and reached 1.4160- a new 2026 high and the best level for the US dollar since April 2025. 

However, it has stepped back from that earlier high now and that relapse comes in conjunction with similar rebounds in the EUR/USD and GBP/USD since earlier this morning. The USD/CAD has fallen back as low as 1.4135  a short while ago. So, is there more upside to come? It sure look possible in due course. The USD/CAD is right now at 1.4140