Daily Foreign Exchange Update for May 26, 2026
May 26, 2026
USD/CAD is hovering just north of the 1.38 handle this morning, but for a pair that has climbed roughly two and a half cents since the start of the month, price action feels surprisingly restrained.
Spot Rates
- USDCAD: 1.3805 - 1.3810 (as at 8:15am PST)
- Asia: 1.3802 to 1.3810
- Europe: 1.3798 to 1.3815
- North America: 1.3800 to 1.3822
Technical Support / Resistance:
- S2 1.3700
- S1 1.3750
- R1 1.3850
- R2 1.3900
Key Economic Data Releases:
- U.S. Housing Price Index: 0.1% (prev. 0.1%)
Important events we're watching this week:
- May 27, USA, ADP employment change
- May 28, USA, Core PCE price index, durable goods orders
- May 29, Canada, GDP (Mar), Q1 annualized
- May 29, USA, Chicago PMI
Market Spotlight
USD/CAD is hovering just north of the 1.38 handle this morning, but for a pair that has climbed roughly two and a half cents since the start of the month, price action feels surprisingly restrained. Much of that comes down to the unusual dynamic currently at play in the Middle East, where both currencies are finding support from the same headlines, just for very different reasons. Escalating tensions continue to underpin the U.S. dollar through safe haven demand, while elevated oil prices are helping prop up the Canadian dollar, leaving USD/CAD caught in something of a geopolitical stalemate. Flip the script and a meaningful de-escalation likely works in reverse, softening both supports at the same time. For now, the pair appears content to consolidate near recent highs while markets wait for a clearer catalyst.
From a technical standpoint, USD/CAD is bumping up against a fairly important resistance zone around the low 1.38s, where the 200 day moving average and key retracement levels converge. Momentum indicators still lean mildly constructive, but not decisively so, suggesting this rally may need a fresh fundamental excuse before extending meaningfully higher. In the meantime, dips toward the mid 1.37s should find support, while a clean break above 1.3815 could open the door toward the upper 1.38s. At the moment, it feels like a market waiting for someone, or something, to blink first.
- Currently, the TSX is down 0.60% and the DJIA is up 0.58%.
- EURCAD is down 0.13% trading between 1.6039 and 1.6079.
- GBPCAD is down 0.41% trading between 1.8564 and 1.8644.
- JPYCAD is down 0.23% trading between 0.00866 and 0.00868.
- Gold is down 1.29% trading between $4,500 - $4,580USD/oz.
- Silver is down 1.33% trading between $75.49 - $78.39USD/oz.
- Oil (WTI crude) is up 4.08% trading between $89.45 and $93.40.