The USD/CAD currency pair currently holds firm, trading around the 1.4070 area. This stability follows gains made over the past two days. However, traders should note that despite the proximity to this weekly high, a mixed fundamental backdrop suggests caution before making fresh bullish bets.

Recent events have led to this cautious market stance. Investors are particularly interested in the upcoming speech by Federal Reserve Chair Jerome Powell, which is expected to provide insights into future U.S. monetary policy. The interplay between Powell’s remarks and the current trading position of USD/CAD could lead to heightened volatility.

Traders should prepare for potential price shifts based on economic indicators and Powell’s upcoming commentary. This week’s developments will be crucial in shaping market direction moving forward.