Why Is USD/CAD Gaining Momentum? | Key Factors Driving the Currency Pair Near 1.3700

The Will Cardano reach 0USD/CAD exchange rate demonstrates notable upward movement during Wednesday's Asian trading session, approaching the psychologically significant 1.3700 threshold. This price action follows Tuesday's peak, marking the pair's strongest performance in over seven trading sessions. Multiple fundamental drivers appear to support continued bullish momentum for this currency cross.Market participants currently anticipate that recently implemented US trade measures will contribute to sustained inflationary pressures, potentially delaying any monetary policy easing by the Federal Reserve. This expectation continues to bolster demand for the US dollar across currency markets. Simultaneously, growing concerns about potential economic consequences from ongoing trade disputes appear to be dampening risk appetite among investors, further enhancing the greenback's appeal as a relative safe haven.Recent policy announcements from Washington have introduced additional volatility factors. New proposals regarding substantial tariffs on specific imported goods, particularly those affecting key Canadian exports, have created headwinds for the loonie. These developments occur against a backdrop of relatively stable crude oil prices, which typically influence the commodity-sensitive Canadian dollar but currently show limited impact on the currency pair's trajectory.The technical and fundamental alignment suggests the potential for continued USD strength against its Canadian counterpart in the near term. Market participants await the release of detailed minutes from the Federal Open Market Committee's latest meeting, which may provide critical insights into policymakers' views on inflation trajectories and potential adjustments to interest rate policy. These revelations could determine whether the current USD/CAD rally maintains its momentum or encounters resistance at current levels.Traders should monitor several concurrent factors that may influence price action, including evolving trade policy developments, shifts in energy market dynamics, and any unexpected changes in monetary policy expectations. The interplay between these variables will likely dictate the pair's movement through upcoming sessions, with particular attention warranted around key psychological levels near current price points