USD/CAD rebounds from 1.3800 as focus shifts to US Inflation data
- USD/CAD recovers from 1.3800 ahead of the US CPI data.
- Economists projected that the US core CPI grew at a steady pace in October.
- Fed Powell characterized current interest rates as inadequate to tame price pressures.
The USD/CAD pair rebounds after getting support near 1.3800 ahead of the United States inflation data for October. The Loonie asset recovered amid anxiety as the inflation data would provide further cues about the likely monetary policy action by the Federal Reserve (Fed) in December.
S&P500 futures generated some losses in the London session, portraying a risk-off mood. The US Dollar Index (DXY) is consistently making efforts to break above the immediate resistance of 106.00. 10-year US Treasury yields advance to near 4.66% ahead of US Consumer Price Index (CPI) data.
As per the consensus, the core CPI that excludes volatile food and oil prices grew at a steady pace of 0.3% on a monthly basis. The annual core CPI is also seen to grow by 4.1%. A stubborn US inflation data would elevate risks of further policy-tightening by the Federal Reserve (Fed).
Last week, Fed Chair Jerome Powell characterized current interest rates as inadequate to tame price pressures. Powell said that the Fed will not hesitate to raise interest rates further if inflation remains stubborn.
Meanwhile, the oil price attempts recovery after discovering buying interest near $75.00 as OPEC sees steady demand by China in 2024. It is worth noting that Canada is the leading exporter of oil to the United States and higher oil prices support the Canadian Dollar.
Author
Sagar Dua
FXStreet
Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.
