The USD/CAD exchange rate reached its highest point since November 2020, climbing to 1.4247. This significant increase follows a notable interest rate cut by the Bank of Canada, demonstrating market reactions to shifts in monetary policy.

This rally shows an increase of almost 20% from its lowest level since 2020, indicating strong bullish sentiment in the pair. Market participants now anticipate CPI data from Canada and the upcoming Federal Reserve decision, both of which could have critical implications for the USD/CAD outlook.

Strategically planning ahead of these key events is crucial for traders. Analyzing the potential reactions to upcoming data could help traders navigate through volatility and optimize their positions.