The US dollar regained some ground against the Canadian dollar in the early Asian session. It gave back most of its gains with the opening of the London session. The pair traded at 1.3060, as of 10:30 a.m. London time.

The Canadian dollar is still facing buying pressure on prospects that the Bank of Canada will hold rates steady, compared to an increasingly dovish Fed. Both central banks are going to release their monetary policy reports this Wednesday.

The latest CoT report underpins the current bullish sentiment on the Canadian dollar, which saw the third-largest position shift among all major currencies, with an increase in bullish positioning of $1.6 billion. The US dollar faced the strongest reversal in positioning, with bullish bets falling by a whopping $5.6 billion in the week ending October 25.

Canada is a major oil-producing country and rising oil prices have been beneficial for the Canadian dollar recently. The price of Brent crude surged slightly more than 6% last week.

From a technical standpoint, the recent downtrend in the US dollar vs. Canadian dollar pair looks overstretched, with the daily RSI reaching oversold territories and the MACD turning north. Still, besides the low of 1.3055 reached on Friday, we don’t see any meaningful technical support for the pair before the July lows in the lower 1.30xx levels.

To the upside, the September 10 low of 1.3134 may act as an important mid-term resistance level in case the greenback recovers some ground against the Canadian dollar. An unexpected hawkish tone of the Fed’s meeting on Wednesday may attract fresh buyers to the pair, in which case all eyes will likely be on the aforementioned September low. is a site operated by TransferWise Inc. (“We”, “Us”), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of TransferWise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on do not represent our views.