USD/CAD rises over but fails to sustain above 1.3400.

The USD/CAD pair edged higher on Tuesday, breaking a two-day losing run to its lowest level since November 25.

Spot prices maintain a moderately optimistic tone moving into the North American session, with the goal of maintaining momentum above the 1.3400 round-figure threshold.

Investors will be looking for signals about the Fed’s rate hike pace at upcoming meetings, which will play a crucial role in fueling USD demand.

The mixed US jobs report and the disappointing release of the US ISM PMI on Friday raised expectations for the Fed to ease off on policy tightening.

Investors will be looking for signals regarding the Fed’s rate hike schedule at upcoming meetings, which will play a crucial role in the market.

The fundamental background necessitates considerable prudence before initiating directional bets in the absence of any pertinent market-moving economic reports, either from the US or Canada.

Meanwhile, the recent break-down below a theoretically critical 100-day SMA favors bearish traders and raises the possibility of further declines.

As a result, any further upward movement could still be viewed as a buying opportunity and could swiftly lose steam.