• Soft CPI print decisively takes a July Fed hike off the table

• USD offered post-data, broad-based weakness as rate expectations reprice lower

• Positioning backdrop matters - elevated USD longs leave scope for a corrective washout

• Short squeeze dynamics favour currencies with crowded shorts, CAD stands out

• USD/CAD has broken cleanly through 1.4140 support, now trading sub-1.41 with momentum

• Near-term support seen at 1.4000, though stronger demand likely closer to 1.3930–1.3967 zone

• Macro and positioning alignment points to further downside - bias for a deeper USD/CAD pullback intact
usdcad daily chart


Justin McQueen is a Reuters market analyst. (The views expressed are his own). ((Email: ))