BoC Pause Prospects Limits Loonie's Upside. Forecast as of 10.06.2026

The wide interest rate differential between the Federal Reserve and the Bank of Canada, combined with oil's muted response to the escalating geopolitical tensions in the Middle East, has boosted the USD/CAD pair. Let's examine these drivers in detail and develop a trading plan.Major Takeaways Oil does not help USD/CAD bears. The Bank of Canada may leave its rate unchanged in 2026. Monetary policy is favoring the greenback. The USD/CAD pair can be bought on a pullback from 1.3925, 1.3900, and 1.3