The U.S. Dollar/CAD Rate Eyes March Low Ahead of FOMC Rate Decision – The Canadian Dollar is expected to stay steady and stable at around 1.25 while the U.S. Dollar drops. The U.S. dollar will also lose its advantage and continue to slide to a new record low. The U.S. Dollar will be able to withstand the Canadian Dollar’s strength. This is according to several Forex experts who are watching the situation closely.
Experts are of the opinion that this move is very unexpected and can’t predict the exact timing at the moment. They believe that it will be at least a few days until the CAD/USD Rate Eyes March Low is revealed and there will be some retracement in the process.
The CAD/USD Rate Eyes March Low may be triggered by a negative economic report in Canada or the United States. But, one thing is for sure; it will be triggered by something that will affect the Canadian Dollar first before the U.S. Dollar.
The Canadian Dollar has weakened due to the fact that the Federal Reserve has been raising interest rates for quite some time now and it seems like the United States and its central banks will soon do the same. But, the United States has a stronger economy than Canada and it has been able to overcome past monetary problems much quicker than Canada.
However, the Canadian dollar has not been hit by the recent interest rate hike and it has not lost its advantage as compared to the US Dollar. This is because, the U.S. Dollar has a high exchange rate, which means that when the U.S. Dollar drops to a certain level, it makes Canadian Dollars drop in exchange rates and vice versa. However, this is one of the reasons why the CAD/USD Rate Eyes March Low may occur.
The CAD/USD Rate Eyes March Low may happen if there is a sudden change in interest rates or if the Federal Reserve raises interest rates for the third time in a row. One of the main reasons for this is the U.S. Dollar falling from a record high and it becomes difficult for the Canadian Dollar to make a comeback to its former status. and maintain its advantage.
In addition, the current economic data may not be showing positive results on the economy which may also be responsible for a decline in the CAD/USD Rate Eyes March Low. Even if the economic data does not show good results, there will still be chances for a rebound and it will definitely happen in the coming weeks and months. So, the CAD/USD Rate Eyes March Low can be expected to rebound and the CAD/USD Rate May See a Comeback In The Coming Weeks and Months.
With the current data and the expected outlook, experts believe that there will be a decline in the CAD/USD Rate in the coming months. There are also many traders who are predicting that the CAD/USD Rate May Sees a Comeback in the Next Few Days.
If the current data continues to show a downward trend for both the USD/CAD and the USD/CADM rates, then there are chances that both the currency pairs will fall further and one of them will hit the US Dollar/CADM Convergence Line. However, there are traders who predict that the CAD/USD Rate May Sees a Comeback After Convergence Day, at least until the end of the week.
Since central banks of the world are planning to keep their interest rates low for a while and they will likely do the same for the third time in a row, the future of CAD/USD rates may become uncertain in the future. and we can expect the CAD/USD Rate March Low to rise higher than the previous lows.
According to some experts, there is no reason for investors to be worried about the Federal Reserve raising interest rates for the third time since the economy has been improving despite the global recession and despite the US Dollar dropping. They believe that the United States economy is still on a strong track and there is more room for the United States economy to recover.
And, the US economy will continue to grow despite the global recession and even if the Federal Reserve lowers its interest rates for the third time, the US economy will still continue to grow and the United States economy will continue to create jobs. Therefore, the U.S economy should be able to keep up with the inflationary pressures from the global economy.