USD/CAD: Greenback Edges Higher Against the Canadian dollar on Powell Comments and Trade Headlines

As of 2:00 p.m. London time, the Canadian dollar traded at 1.3304 against the big dollar.

The US dollar edged slightly higher against the Canadian dollar in today’s trade as positive trade deal news and Powell comments underpinned the greenback.

Trade representatives from the US and China talked by phone on Tuesday early morning London time, signaling that trade talks are on track towards a phase-one deal.

According to China’s Ministry of Commerce, the officials agreed to work on remaining trade points and “reached consensus on properly resolving relevant issues.”

The news has somewhat increased risk appetite among market participants, with major stock indices trading in the green and risk currencies outperforming other majors. However, the Canadian dollar failed to pick up support and was mostly lower for the day so far.

Along with the trade deal call, Fed Chairman Powell delivered a speech in Providence and signaled that interest rates were unlikely to change anytime soon as the Fed remains “strongly committed” to the 2% inflation target.

The Federal Reserve holds its next monetary policy meeting on December 10-11.

From a technical standpoint, the greenback might have difficulties to extend gains beyond the upper 1.33s in the short-term, as the recent daily candles show a strong rejection of higher prices at the moment.

The RSI formed a hidden bearish divergence, signaling that the November upturn in the USD/CAD pair might be losing momentum and could be poised for a reversal.

The November 20 high of 1.3327 continues to act as a mid-term resistance level, followed by the October highs around mid-1.33s. To the downside, the US dollar might pick up support around the 1.3270 level which aligns with a horizontal support zone. is a news site only and not a currency trading platform. 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.