The potential extension of production cuts by OPEC+ to support crude oil prices, along with the tensions in the Red Sea supported by Iran in Yemen, also contribute to the upward pressure on crude oil prices. This, in turn, supports Canada's exports, which primarily focus on consumer goods, and may directly impact the USD/CAD pair.

The resilient consumer demand in the United States, including the diminished expectations of interest rate cuts by investors, coupled with decreased returns on US government bonds, have bolstered the USD Index (DXY), increasing global capital market risks.

Investors are awaiting Personal Consumption Expenditures (PCE) Price Index data on Thursday, which is another metric used to assess the Fed's interest rate adjustments, with potential impacts on the USD. Additionally, remarks from the FOMC could provide short-term profit opportunities for investors.