HomeTrading IdeasRisk-On Mood Returns but...

Risk-On Mood Returns but US Data Could Shift Dollar’s Direction Again

Markets appear to be turning the page on the Israel-Iran conflict, which had briefly supported North American currencies.

The found a bid as crowded short positions were unwound, driven by rebalancing flows and position closures.

The also benefited, buoyed by a surge in Oil prices that temporarily reinforced the outlook for Canada’s energy-linked economy.

However, both narratives have now faded. The has returned to the lower end of its monthly range, while the Loonie has weakened in tandem with , giving back its war premium.

With geopolitical catalysts fading, market attention is shifting back to incoming economic data for the next directional cues on USD and CAD.

North American Equity Indices Snapshot

North-American Indices performance since last Monday – June 25, 2025

Equity markets across North America are firmly back in “greed” territory, capitalizing on the recent shift in sentiment surrounding the Middle East. Selling momentum in indices continues to be short-lived, often countered quickly by eager dip buyers.

The is trading comfortably above the 6,000 level and has just broken through 6,100, while the has climbed to fresh all-time highs.

Meanwhile, Canada’s TSX remains above its record levels but is beginning to show signs of hesitation.

The latest Canadian inflation data surprised to the upside, with a 0.6% month-over-month reading, highlighting the early impact of tariff-related disruptions.

US Dollar Mid-Week Performance vs MajorsUS Dollar Performance

Source: TradingView.

The picture for the is more rosy than it was a week ago, with the Greenback lagging against all currencies except for the Loonie with which the USD is broadly unchanged.

Market participants are investing in Dollar-denominated instruments more carefully, notably hedging their currency exposure through cross-currency options, which gives underlying weakness to the USD.

Canadian Dollar Mid-Week Performance vs MajorsCAD Performance

Source: TradingView

European currencies are taking the lead against their North American counterparts again on this Canadian Dollar performance picture.

Weaker oil and higher Canadian inflation are not helping to bolster CAD performance – Markets will need to see further economic progress from the Land of Maple Syrup to see more strength in its currency.

Intraday Technical Levels for the USD/CADUSD/CAD-4-Hour Chart

Source: TradingView

USD/CAD found some relief as war flows benefited the US Dollar even more than the CAD despite preceding higher Oil prices.

A 2.5 handle reversal took the pair towards the 1.37 range, and after tipping at 1.38, sellers are coming back.

Prices are consolidating in the 1.3740 Current Pivot, and contained between the 4H 200 and 50-period Moving Averages – any breakout above or below these containing MAs will give more decisive directions for newfound trends.

Levels to watch for the North American forex pair:

Support Levels:

  • Intermediate support zone & MA 50 1.3675 to 1.3686
  • Higher Timeframe Key support Zone 1.3560 to 1.36
  • 1.3540 War swing lows

Resistance Levels:

  • 1.38 Key Resistance Zone
  • 1.3770 4H 200-period Moving Average
  • 1.39 Psychological Resistance Zone

US and Canada Economic Calendar for the Rest of the WeekUS and Canada Economic Calendar

North American upcoming Data releases – MarketPulse Economic Calendar

Except for Canadian monthly figures on Friday (expected at 0%), most of the Economic data releases will focus on the United States.

Tomorrow will see the release of the weekly report expected at 245K (watch for any beat) and more market-moving, the US Q1 figure expected at -0.2%.

Friday continues the development of inflation data review with the Fed’s favorite monthly release expected to rise by 0.1% month-over-month and is expected to rise 2.6% on the year (releasing at 8:30 A.M).

Any beat will slow the pricing of more cuts that have been progressively shifting after a few FED speakers (particularly Waller) have been appearing with dovish comments.

Also, do not forget the University of Michigan release at 10:00 A.M. on Friday, expected at 60.5 – Markets will spot if fears from macroeconomic uncertainty continue to abate.

Safe Trades!

Original Post

Most Popular

More from Author

The Bull Market Is Alive and Well

The bull market is alive and well, even amid widespread talk...

Why Is Jasper Therapeutics Stock Falling On Monday? – Jasper Therapeutics (NASDAQ:JSPR)

Jasper Therapeutics, Inc. JSPR stock is experiencing a steep decline on...

Stocks Wobble as Trump Resurrects Tariff Threats Ahead of July 9 Deadline

Market participants were expecting an upbeat start to the week on...

Read Now

Trump’s New Tariffs Shake Markets as Yen and ETFs Slide – iShares MSCI Japan Index Fund (ARCA:EWJ), iShares MSCI Malaysia Index Fund (ARCA:EWM)

The U.S. dollar is notching its strongest one-day gain against the Japanese yen in nearly two months as traders react to President Donald Trump's sweeping new tariffs targeting multiple U.S. trading partners.Starting Aug. 1, all goods imported from Japan and other Asian trading partners will face a...

The Bull Market Is Alive and Well

The bull market is alive and well, even amid widespread talk of the “death of U.S. exceptionalism.” Early 2025 saw a sharp shift in investor sentiment. Concerns over erratic trade policy, soaring debt, and weakening pressure challenged America’s long-standing market dominance. Markets fell sharply in April...

Why Is Jasper Therapeutics Stock Falling On Monday? – Jasper Therapeutics (NASDAQ:JSPR)

Jasper Therapeutics, Inc. JSPR stock is experiencing a steep decline on Monday, plummeting by nearly 55%. This significant drop is accompanied by an exceptionally high trading volume of 9.9 million shares, vastly exceeding its average daily volume of 251.9K, according to data from Benzinga Pro.What Happened?The company...

Stocks Wobble as Trump Resurrects Tariff Threats Ahead of July 9 Deadline

Market participants were expecting an upbeat start to the week on the hope that trade deals might finally be announced as the Trump administration deadline of July 9 approaches. However, President Trump adopted a confrontational stance once more by announcing that the US will begin issuing tariff...

CAD/JPY Ready to Continue Rising Ahead of Employment Change and Unemployment Rate

For three months since April, the currency has shown strength against the . although at the moment the price still cannot break the small resistance area on the H4 timeframe. but it is expected that the fundamental impulses can move the market more significantlyFigure 1. CAD/JPY...

What’s Going On With Hims & Hers Health Stock On Monday? – Hims & Hers Health (NYSE:HIMS)

Hims & Hers Health, Inc. HIMS is currently experiencing a decline in its stock price, trading lower on Monday. The company’s stock has plummeted approximately 18% over the past month, reflecting recent challenges.A significant development contributing to this decline occurred in June 2025, when Novo Nordisk A/S...

Why Is Cogent Biosciences Stock Trading Higher On Monday? – Cogent Biosciences (NASDAQ:COGT)

Cogent Biosciences, Inc.‘s COGT bezuclastinib showed meaningful clinical benefit for patients with non-advanced systemic mastocytosis, a rare and debilitating immune disorder. With statistically significant improvements across all endpoints—including symptom reduction and biomarkers of mast cell activity—the data support the company's plan to file for Food and Drug Administration...

3 Bullish Setups to Watch in July Amid Seasonal Tailwinds

As the second half of the year begins, several bullish setups are emerging—each supported by seasonal patterns and historical data. is approaching multi-year highs following a strong June, while technical signals in the broader market and semiconductor sector point to continued momentum. Meanwhile, recent policy developments may...

The Energy Report: Listen to What OPEC Says

prices are shaking off a larger-than-expected OPEC production increase as the precious metals get hit by a ton of bricks after President Trump posted about new tariffs on BRIC Nations on his Truth Social account. Yet despite the talk about OPEC wanting to maintain its market share,...

Why Is KalVista Pharmaceuticals Stock Soaring On Monday? – KalVista Pharma (NASDAQ:KALV)

The U.S. Food and Drug Administration (FDA) on Monday approved KalVista Pharmaceuticals Inc.’s KALV Ekterly (sebetralstat) for acute attacks of hereditary angioedema (HAE) in adult and pediatric patients aged 12 years and older.Ekterly is the first and only oral on-demand treatment for HAE. HAE is characterized by recurrent...

Dow Jones Forecast: Political Tensions and Tariff Risks Weigh on Outlook

US futures are rising on Monday after the extended holiday weekend. Uncertainty surrounding U.S. trade tariff policies are keeping investors cautious, whilst Tesla (NASDAQ:) is taking a hit after Musk announced plans to launch a political party.US Futures 0.78% at 44839 0.7% at 6266 0.53% at 23977In...

Why Is Apogee Therapeutics Stock Soaring On Monday? – Apogee Therapeutics (NASDAQ:APGE)

Apogee Therapeutics Inc. APGE stock is experiencing a significant surge, trading almost 29% higher in premarket on Monday.This substantial increase in stock price follows the release of positive 16-week data from Part A of the Phase 2 APEX clinical trial of APG777, an anti-IL-13 antibody, for moderate-to-severe...