The USD/CAD pair trades subduedly as the Canadian Dollar strengthens on positive employment data, while the US Dollar remains firm on expectations of a pause in the Federal Reserve’s interest rate cuts. Investors await US inflation data for further guidance on monetary policy.
USD/CAD trades subduedly as the Canadian Dollar outperforms on upbeat domestic employment data for December. The US Dollar remains firm as traders pare Fed dovish bets after upbeat US NFP data. Investors await the US inflation data for December for more interest rate guidance. The USD/CAD pair edges lower to near 1.440 in Monday’s North American session.
\The Loonie pair ticks lower as the Canadian Dollar (CAD) exhibits strength after Canada’s surprisingly upbeat labor market data weighed on market expectations for the Bank of Canada (BoC) to continue reducing interest rates at a larger-than-usual pace of 50 basis points (bps). The Canadian employment report showed a robust addition of laborforce alongwith a sharp decline in the jobless rate. However, a one-time good employment report appears to be insufficient to allow the BoC to pause its policy-easing cycle. \The Loonie pair falls marginally even though the US Dollar (USD) extends its winning streak for the fifth trading session on Monday and posts a fresh over two-year high, with the US Dollar Index (DXY) rising above 110.00. The Greenback performs strongly as traders expect that the Federal Reserve’s (Fed) current interest rate cut cycle has paused for now. According to the CME FedWatch tool, the central bank is expected to keep interest rates in the current range of 4.25%-4.50% in the January, March, and May policy meetings. Meanwhile, traders are divided for the policy meeting in June. Market participants have pared Fed dovish bets on the back of upbeat United States (US) Nonfarm Payrolls (NFP) data for December. The data showed that labor demand was surprisingly stronger than November’s reading. The Unemployment rate came in lower at 4.1% than estimates and the former release of 4.2%. Investors should brace for more volatility in market expectations for the Fed’s monetary policy outlook as the US Consumer Price Index (CPI) data for December is lined up for release on Wednesday. Recent commentaries from Fed officials have indicated that they are concerned about a slowdown in progress in the disinflation trend
USD CAD CANADIAN DOLLAR US DOLLAR INTEREST RATES INFLATION
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
USD/CAD Soars to Fresh Four-Year High as Canadian Dollar Weakening IntensifiesThe USD/CAD exchange rate surged to a more than four-year high near 1.4330 on Wednesday, fueled by the Canadian Dollar's decline amidst growing concerns of inflation falling short of the Bank of Canada's 2% target. The rally was triggered by softer-than-anticipated Canadian CPI data for November, raising expectations of further interest rate cuts by the BoC.
Read more »
USD/CAD depreciates to near 1.4400 as improved Oil prices support the Canadian DollarUSD/CAD remains tepid following two days of gains, trading around 1.4410 during the Asian hours on Friday.
Read more »
USD/CAD May Rise on Hawkish Fed and Trudeau's ResignationThe US Dollar strength and Canadian political uncertainty are influencing USD/CAD trading.
Read more »
USD/CAD drifts lower to near 1.4300 as Canada's Justin Trudeau announces resignation as Prime MinisterThe USD/CAD pair edges lower to near 1.4310 during the early European session on Tuesday.
Read more »
USD/CAD Edges Lower Ahead of New Year HolidayThe USD/CAD pair trades lower as US Dollar holds losses amid thin trading volumes ahead of the New Year holiday.
Read more »
USD/CAD softens below 1.4250 ahead of Canadian CPI inflation dataThe USD/CAD pair weakens to near 1.4235, snapping the three-day winning streak during the Asian trading hours on Tuesday.
Read more »