USD/CAD to rise above 1.40 in the coming months

# POST-MARKET | TRADE MARK
- Update on Measurement

U.S. Dollar / Canadian Dollar
- 4H & 1H

USD Bias | Bullish
- Monetary policy dynamics should favor Dollar strength into the early part of next year
- Softer growth outlook that will drive safe-haven flows towards the Dollar
- Several factors support Dollar strength
- Reasonably steady US economic trends and hawkish leaning Fed

USD Bias | Bearish
- Anticipated slowdown of the US economy
- The hurdle for raising rates this month is higher, implying fresh US Dollar falls
- Dollar weakness will pick up pace during 2024 as market attention turns toward Fed rate cuts
- Fed feels more comfortable with receding inflation

CAD Bias | Bearish
- Economic developments in Canada less constructive
- Slowing growth, lower commodity prices, and substantial monetary easing
- Spending out of control and taxation widening
- Canadian headwinds continue to mount

CAD Bias | Bullish
- Fresh wave of demand for commodities and robust economic data
- Some Silver linings from CAD after BoC pause
- Loonie is an attractive pro-cyclical bet
- With BoC aggressively raising rates and oil prices around 100, outlook for CAD is positive

Conclusion | Trade Plan Execution & Risk Management on Demand
- USD/CAD holds position around 1.3850 after pulling back from eight-month highs