{"id":29956,"date":"2026-03-05T11:58:24","date_gmt":"2026-03-05T11:58:24","guid":{"rendered":"https:\/\/www.vtmarketsglobal.com\/en\/uncategorized\/29956\/"},"modified":"2026-03-05T11:58:24","modified_gmt":"2026-03-05T11:58:24","slug":"during-european-trading-usd-cad-trades-near-1-3645-holding-the-20-day-ema-as-dollar-rebounds-loonie-firms","status":"publish","type":"post","link":"https:\/\/www.vtmarketsglobal.com\/en\/live-updates\/29956\/","title":{"rendered":"During European trading, USD\/CAD trades near 1.3645, holding the 20-day EMA as dollar rebounds, loonie firms"},"content":{"rendered":"USD\/CAD was flat near 1.3645 in the European session on Thursday, as a firmer US Dollar offset a steadier Canadian Dollar. The pair hovered near its 20-day EMA at about 1.3665.\n\nThe US Dollar Index was up 0.2% near 99.00 after a pullback from 99.67 on Tuesday, a three-month high. A New York Times report about Iran\u2019s willingness to talk was later denied by Tehran, which also threatened a prolonged war, supporting demand for safe-haven assets.\n\n

Us Data Reinforces Dollar Demand<\/h3>\nUS data also supported the Dollar. ADP showed 63K private-sector jobs in February versus 50K expected and 11K previously, while ISM Services PMI rose to 56.1 versus 53.5 expected and 53.8 in January.\n\nThe Canadian Dollar stayed supported by higher oil prices linked to the Middle East conflict, as Canada is the largest oil exporter to the US. Against other currencies, the CAD traded firmer.\n\nThe 14-day RSI stayed in the 40.00\u201360.00 range and below 50. Support is at 1.3632, then 1.3558\u20131.3559 and 1.3490, while resistance is at 1.3720.\n\nLooking back to this time in 2025, we saw the market caught between conflicting forces, holding USD\/CAD steady around 1.3645. The US-Iran conflict was creating a tug-of-war, with risk-off demand supporting the US dollar while simultaneously pushing oil prices higher to the benefit of the loonie. This created a period of consolidation that derivative traders found challenging.\n\n

Shift To Diplomacy And Rate Divergence<\/h3>\nThe geopolitical landscape has since shifted from active conflict to tense diplomacy, removing the immediate war premium from markets. West Texas Intermediate (WTI) crude oil is now trading at approximately $82 per barrel, which is notably higher than the sub-$80 levels seen during the peak tensions in early 2025. This sustained strength in energy continues to provide an underlying bid for the Canadian dollar.\n\nLast year’s economic data showed a surprisingly strong US ISM Services PMI of 56.1, which fueled US dollar strength. Today, we see a more moderated picture, with the February 2026 ISM Services report coming in at a still-expansionary 52.8. This indicates a cooling from the post-pandemic highs but reflects a resilient US economy.\n\nThe labor market story has also changed significantly from the weak ADP report of only 63,000 jobs in February 2025. The most recent Non-Farm Payrolls report showed a robust gain of 195,000 jobs, reinforcing the Federal Reserve’s cautious stance. This economic divergence has helped push the US Dollar Index (DXY) to around 103.50, a stark contrast to the 99.00 level it flirted with last year.\n\nThis dynamic suggests traders should consider the widening interest rate differential as a primary driver. The Bank of Canada has begun a modest easing cycle while the Federal Reserve remains on hold, creating a favorable carry for holding US dollars. Therefore, using options to define risk, such as buying call spreads, could allow traders to position for a gradual grind higher in USD\/CAD while being protected from sharp reversals caused by oil price volatility.\n\nCreate your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b>\n

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Start trading now – Click here<\/a> to create your real VT Markets account <\/strong> <\/p>\r\n","protected":false},"excerpt":{"rendered":"

USD\/CAD flat near 1.3645 as stronger US Dollar offset steady CAD; oil prices supported loonie, data.<\/p>\n","protected":false},"author":38,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[46],"tags":[],"class_list":["post-29956","post","type-post","status-publish","format-standard","hentry","category-live-updates"],"acf":[],"aioseo_notices":[],"featured_image_src":null,"featured_image_src_square":null,"author_info":{"display_name":"josephine","author_link":"https:\/\/www.vtmarketsglobal.com\/en\/author\/josephine\/"},"_links":{"self":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts\/29956","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/users\/38"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/comments?post=29956"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts\/29956\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/media?parent=29956"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/categories?post=29956"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/tags?post=29956"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}