USD/CAD appreciates to near 1.3750 due to lower Oil prices


  • USD/CAD gains ground due to the hawkish sentiment surrounding the Fed.
  • CME FedWatch Tool suggests the odds of a Fed rate cut in September have decreased to nearly 49.0%.
  • The decline in the WTI price put pressure on the commodity-linked Canadian Dollar.

USD/CAD continues its winning streak for a third successive session, trading around 1.3760 during the European hours on Tuesday. US Dollar (USD) remains strong as investors adopt cautious stance ahead of the Federal Reserve’s (Fed) interest rate decision scheduled on Wednesday.

The Federal Reserve is anticipated to keep interest rates steady in the range of 5.25%-5.50% as it aims to curb inflation toward its 2% target. Additionally, the US headline and core CPI figures for May are estimated to show year-over-year increases of 3.4% and 3.5%, respectively.

Robust US jobs data for May has reduced the odds of two Federal Reserve interest rate cuts in 2024. According to the CME FedWatch Tool, the likelihood of a Fed rate cut in September by at least 25 basis points has decreased to nearly 49.0%, down from 59.5% a week earlier.

On Loonie’s front, the decline in the crude Oil prices put pressure on the commodity-linked Canadian Dollar (CAD), given the fact that Canada is the largest Oil exporter to the United States (US). West Texas Intermediate (WTI) Oil price hovers around $77.30 per barrel, at the time of writing.

Crude Oil prices are bolstered by expectations of increased fuel demand this summer. According to Reuters, analysts at the energy consulting firm Gelber and Associates noted, "Futures are higher as expectations of summer demand are supportive of prices despite the broader macro landscape remaining less optimistic than weeks previous."

In Canada, the unemployment rate rose to a more than two-year high of 6.2% in May. However, the economy added more jobs than expected, and there was a notable increase in wage growth. Traders are likely to observe the BoC Governor Tiff Macklem as he is scheduled to speak on Wednesday at the Conference of Montreal 2024, where he will participate in a panel discussion about inflation.

USD/CAD

Overview
Today last price 1.3763
Today Daily Change 0.0004
Today Daily Change % 0.03
Today daily open 1.3759
 
Trends
Daily SMA20 1.3668
Daily SMA50 1.3677
Daily SMA100 1.3593
Daily SMA200 1.3579
 
Levels
Previous Daily High 1.3782
Previous Daily Low 1.3754
Previous Weekly High 1.3768
Previous Weekly Low 1.3603
Previous Monthly High 1.3783
Previous Monthly Low 1.359
Daily Fibonacci 38.2% 1.3765
Daily Fibonacci 61.8% 1.3771
Daily Pivot Point S1 1.3748
Daily Pivot Point S2 1.3737
Daily Pivot Point S3 1.372
Daily Pivot Point R1 1.3776
Daily Pivot Point R2 1.3793
Daily Pivot Point R3 1.3804

 

 

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

AUD/USD remains on the defensive near 0.6600 amid mixed Australian PMI, Chinese economic woes

AUD/USD remains on the defensive near 0.6600 amid mixed Australian PMI, Chinese economic woes

The AUD/USD pair trades in negative territory for the seventh consecutive day around 0.6610 on Wednesday during the early Asian session. The mixed flash Australia’s Judo Bank Purchasing Managers Index fails to boost the Aussie. Traders await the US preliminary S&P Global PMIs for June for fresh impetus. 

AUD/USD News

USD/JPY strengthens above 155.50, investors await US PMI data

USD/JPY strengthens above 155.50, investors await US PMI data

The USD/JPY pair trades on a stronger note around 155.85, snapping the two-day losing streak during the early Asian session on Wednesday. The upside of the pair might be limited amid the growing speculation that the Bank of Japan would continue hiking interest rates to boost the currency.

USD/JPY News

Gold price consolidates near weekly peak as traders look to US data for fresh cues

Gold price consolidates near weekly peak as traders look to US data for fresh cues

Gold price struggles to capitalize on Tuesday's positive move amid a modest US Dollar strength, though the downside remains cushioned in the wake of a generally softer risk tone. Furthermore, dovish Fed expectations should cap any meaningful USD appreciation and act as a tailwind for the non-yielding yellow metal.

Gold News

Ethereum ETFs flows data pour in after crossing $1 billion trading volume in first day of launch

Ethereum ETFs flows data pour in after crossing $1 billion trading volume in first day of launch

Ethereum is down about 1% on Tuesday as spot ETH ETFs crossed the $1 billion mark in trading volume. Given its recent price movement, ETH may replicate the price of Bitcoin post-spot BTC ETF launch.

Read more

US S&P Global PMIs Preview: Economic expansion could struggle in July Premium

US S&P Global PMIs Preview: Economic expansion could struggle in July

On Wednesday, S&P Global will release advanced readings for the United States (US) Purchasing Managers Indexes (PMIs) for July, a monthly survey of business activity. The survey is anticipated to indicate that US economic activity in the private sector faced mixed trends during the current month.

Read more

Forex MAJORS

Cryptocurrencies

Signatures