The USD regains some ground — North American Mid-Week Market Update

[Redator]

The US Dollar has stayed firmly at the top of the FX leaderboard since last week, extending its rally on the back of resilient macro data and cautious risk sentiment.

North American Equity indices, meanwhile, have started to show signs of hesitation as geopolitical tensions rise—especially with renewed tariff discussions weighing on global trade expectations.

Both US and Canadian CPI figures came in broadly as expected, which should keep the Fed and the Bank of Canada comfortably on hold for now.

As a result, the USD and CAD have both gained ground relative to other majors, supported by stable rate outlooks and a still-robust domestic backdrop.

There has also been a recent development in the Middle East with Israel attacking positions in Syria after ongoing conflicts between Syrian and Druze Militias which may continue to generate a rise in the Greenback.

Looking ahead, markets are bracing for a period of elevated uncertainty. With geopolitical risks flaring and few clear monetary policy drivers on the horizon, FX and risk assets may enter a more defensive phase over the coming weeks.

Read More: Ethereum takes the hand as Bitcoin finds its local top

North-American Indices Performance

North American Top Indices performance since last Monday, July 16, 2025 – Source: TradingView

Mixed signals, with tech holding strong and consumer defensive, healthcare and other traditional sectors struggling much more.

US Dollar Mid-Week Performance vs Majors

USD vs other Majors, July 16, 2025 - Source: TradingView.

The US Dollar had seen a stellar rise particularly after yesterday's CPI report but reactions from this morning's Middle East tensions have created some mixed reactions. A story to follow closely

CA Dollar Mid-Week Performance vs Majors

CAD vs other Majors, July 16, 2025 - Source: TradingView.

The Loonie has held particularly decent performance against all majors except for the US Dollar as North American Currencies make a comeback.

Intraday Technical Levels for the USD/CAD

USDCAD 4H Chart, July 16, 2025 – Source: TradingView

A lack of further reversal higher in the pair points to further confirmation that the back-and-forth action is more in the form of a range than a double bottom, particularly after today's price action formed a strong reversal Wick candle.

Prices are now stalling at the 4H MA 50 – CAD. Strength could be back if its continuous outbeat performance holds.

Any breach below the MA 50 could warrant some decent downside towards the Main 1.36 Support.

Levels to watch are the same as Monday's CPI Analysis:

Support Levels:

• Pivot zone 1.3675 to 1.3686 and 4H MA 200
• 1.36805 4H MA 50
• Higher Timeframe Key support Zone 1.3560 to 1.36

Resistance Levels:

• 1.3740 Pivot turned Resistance
• 1.38 Main Resistance

US and Canada Economic Calendar for the Rest of the Week

The week is not expected to be as heavy in terms of data compared to its beginning – As a reminder we just received the CPI Reports (slightly better than expected but unchanged for US, as expected for Canada) and the US PPI Report this morning (0% vs 0.2% expected, which triggered some rise in sentiment).

The rest of the week will be heavily centered around US Data, with Federal Reserve speakers and the highest tier of data being Friday's University of Michigan Data, expected at 61.5 (Volatile data – Focus on inflation expectations).


Safe Trades for the rest of the week!

Opinions are the authors'; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. The provided publication is for informational and educational purposes only.
If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please refer to the MarketPulse Terms of Use.
Visit https://www.marketpulse.com/ to find out more about the beat of the global markets.
© {CURRENT_YEAR} OANDA Business Information & Services Inc.