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flag USD/CAD pair faces pressure as US dollar steadies, Canadian dollar struggles with economic and political challenges.

flag The USD/CAD pair is under slight pressure, with the US dollar holding back due to thin trading volumes before the New Year. flag The Canadian dollar sees some support from higher oil prices, but overall, the CAD faces challenges from weaker economic data and policy divergence with the US Federal Reserve. flag The Bank of Canada is expected to lower interest rates further, while the Fed remains hawkish, likely keeping upward pressure on the USD/CAD. flag Political uncertainties in Canada also add to the CAD's volatility.

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