The USD/CAD pair trades with mild gains around 1.4400 during the early Asian session on Wednesday.
USD/CAD posts modest gains to near 1.4400 in Wednesday’s early Asian session. The Fed is set to hit the pause button on rate cuts at its January meeting on Wednesday. US trade tariff risk and expectation of BoC rate cuts weigh on the CAD. The renewed US Dollar demand provides some support to the pair. Later on Wednesday, all eyes will be on the US Fed eral Reserve and the Bank of Canada monetary policymeetings.
Its primary tool to achieve these goals is by adjusting interest rates. When prices are rising too quickly and inflation is above the Fed’s 2% target, it raises interest rates, increasing borrowing costs throughout the economy. This results in a stronger US Dollar as it makes the US a more attractive place for international investors to park their money.
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