USD/CAD weekly: dollar gains 110 pips to 1.3906, 2026-06-01

Where USD/CAD closed the week

USD/CAD opened Monday at 1.37966 and closed Friday at 1.39063, gaining 110 pips or 0.80%. The pair reached a weekly high of 1.39247 on Thursday before pulling back slightly. The low print came at the Monday open, with buyers defending that level throughout the week.

What moved price

Asian market turmoil drove the dollar higher across the board. South Korea's KOSPI index crashed while the won hit a 17-year low against the USD, triggering broad risk-off flows that benefited the greenback. The PBOC set its USD/CNY reference rate well above estimates, signaling tolerance for yuan weakness.

The dollar initially weakened against EUR/USD and GBP early Thursday but reversed those losses by the New York close. This reversal pattern extended to USD/CAD, where the pair pushed through 1.3900 resistance before consolidating.

The week ahead

No high-impact events are scheduled for the upcoming week according to the data bundle. Without major economic releases, USD/CAD price action will likely track broader dollar sentiment and risk appetite. If Asian markets stabilize, the pair could retrace toward 1.3850. Continued stress in Korean or Chinese markets would likely push USD/CAD toward the 1.3950 area.

Positioning

Current positioning shows 50.9% of traders are long USD/CAD while 49.1% are short. This near-balanced split suggests no strong directional conviction among retail traders. The slight long bias aligns with the week's uptrend but isn't extreme enough to signal overcrowding.

Levels to watch

The weekly high at 1.39247 stands as immediate resistance. If price closes above that level, the round number 1.3950 comes into focus. Support sits at this week's open of 1.37966. A break below there would target the 1.3750 area where prior consolidation occurred.

Byline: LHFX Research

Risk disclaimer. CFD trading involves substantial risk and is not suitable for every investor. Leverage works both ways and can amplify losses beyond your initial deposit. The analysis above is general market commentary and does not constitute investment advice or a recommendation to buy or sell any instrument. LHFX is regulated by the FSC Mauritius and the FSCA in South Africa. Trade USD/CAD and other major pairs with LHFX's competitive spreads.