CAD quiet ahead of Macklem speech – Scotiabank

FXStreet Insights Team FXStreet

The Canadian Dollar (CAD) is trading in a tight range and entering Tuesday’s NA session with a marginal gain against the US Dollar (USD)

Markets to fade BoC easing

"Fundamentals remain supportive as US-Canada yield spreads threaten fresh lows. The outlook for relative central bank policy will remain the primary focus for the CAD as market participants look to BoC Gov. Macklem’s 2:45pm ET speech in Mexico City. Macklem will be speaking on ‘Flexible-inflation targeting in a more shock-prone world’ and his comments are likely to provide some insight into the BoC’s thinking ahead of the next rate decision on September 17."

"Markets are still pricing about 8bpts of easing for the meeting, however the scope for easing remains limited given that inflation remains well above target. Trade policy developments—easing in US/Canada tensions—are another consideration that should keep the BoC on the sidelines for now."

"USD/CAD’s technical picture is somewhat mixed as market participants consider the conflicting signals offered by Friday’s bearish outside reversal and balance them against bullish trend and momentum indicators. The near-term balance of risk favors a push below 1.3800 and we look to a near-term range bound between 1.3780 support and 1.3920 resistance."

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

EUR/USD holds losses below 1.1850 ahead of FOMC Minutes

EUR/USD stays on the back foot below 1.1850 in the European session on Wednesday, pressured by renewed US Dollar demand and reports that ECB President Lagarde will step down before the end of her term. Traders now look forward to the Minutes of the Fed's January monetary policy meeting for fresh signals on future rate cuts.

GBP/USD defends 1.3550 after UK inflation data

GBP/USD is holding above 1.3550 in Wednesday's European morning, little changed following the UK Consumer Price Index (CPI) data release. The UK inflation eased as expected in January, reaffirming bets for a March BoE interest rate cut, especially after Tuesday's weak employment report.

Gold retains bullish bias amid Fed rate cut bets, ahead of Fed Minutes

Gold sticks to modest intraday gains through the early European session, reversing a major part of the previous day's heavy losses of more than 2%, to the $4,843-4,842 region or a nearly two-week low. That said, the fundamental backdrop warrants caution for bulls ahead of the FOMC Minutes, which will look for more cues about the US Federal Reserve's rate-cut path.

Pi Network rally defies market pressure ahead of its first anniversary

Pi Network is trading above $0.1900 at press time on Wednesday, extending the weekly gains by nearly 8% so far. The steady recovery is supported by a short-term pause in mainnet migration, which reduces pressure on the PI token supply for Centralized Exchanges. The technical outlook focuses on the $0.1919 resistance as bullish momentum increases.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.

Top 3 Price Prediction: Bitcoin, Ethereum, and Ripple face downside risk as bears regain control

Bitcoin, Ethereum, and Ripple remain under pressure on Wednesday, with the broader trend still sideways. BTC is edging below $68,000, nearing the lower consolidating boundary, while ETH and XRP also declined slightly, approaching their key supports.