- USD/CAD trims intraday gains on risk-on sentiment on Monday.
- The decline in the Crude oil prices undermines the Canadian Dollar.
- The US Dollar strengthened as the likelihood of a Fed rate cut in June diminished.
USD/CAD extends its winning streak, trading higher around 1.3600 for the third consecutive session during the Asian hours on Monday. The US Dollar (USD) strengthens, supported by higher US Treasury yields, thereby exerting upward support to the USD/CAD pair.
Additionally, the decline in Crude oil prices contributes pressure to undermining the Canadian Dollar (CAD), given Canada is one of the largest Crude oil exporters to the United States (US). West Texas Intermediate (WTI) oil price extends losses to near $85.10 per barrel, by the press time.
This comes as Israel withdraws additional troops from Southern Gaza, likely in response to increasing international pressure. Moreover, peace talks between Israel and Hamas have resumed in Egypt, reducing tensions that previously fueled the recent surge in oil prices.
The Canadian Dollar encountered difficulties following the release of weaker domestic employment data on Friday. Investors are now anticipating the Bank of Canada’s (BoC) interest rate decision scheduled for Wednesday, with expectations of remaining unchanged at 5.0%.
The US Dollar Index (DXY) trades higher around 104.30, at the time of writing, propelled by a surprising beat from the Nonfarm Payrolls (NFP) report. The strong labor market performance in March, surpassing expectations, has bolstered the bullish sentiment for the US Dollar.
US Nonfarm Payrolls (NFP) reported a significant increase of 303,000 jobs in March, surpassing expectations of 200,000. However, the previous growth of 275,000 was revised downward to 270,000. According to the CME FedWatch Tool, the probability of a rate cut has decreased to 46.1%. Traders are awaiting the release of US Consumer Price Index data for March scheduled on Wednesday.
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
Editors’ Picks
AUD/USD drops toward 0.6500 after dismal Aussie Retail Sales, mixed China's PMIs
AUD/USD is extending losses toward 0.6500, hit by an unexpected drop in the Australian Retail Sales for March while China's NBS April PMI data came in mixed. Upbeat China's Caixin Manufacturing PMI data failed to lift the Aussie Dollar amid a softer risk tone and the US Dollar rebound.
USD/JPY holds rebound to 157.00 after Monday's suspected intervention-led crash
USD/JPY is trading close to 157.00, staging a solid rebound in the Asian session on Tuesday. The pair reverses a part of heavy losses incurred on Monday after the Japanese Yen rallied hard on probable FX market intervention by Japan's authorities. Poor Japan's jobs and Retail Sales data weigh on the Yen.
Gold prices soften as traders gear up for Fed monetary policy decision
Gold price snaps two days of gains, yet it remains within familiar levels, with traders bracing for the US Fed's monetary policy decision on May 1. The XAU/USD retreats below the daily open and trades at $2,334, down 0.11%, courtesy of an improvement in risk appetite.
BNB price risks a 10% drop as Binance founder and ex-CEO Changpeng Zhao eyes Tuesday sentencing
Binance Coin price is dumping, with the one-day chart showing a defined downtrend. While the broader market continues to bleed, things could get worse for BNB price ahead of Binance executive Changpeng Zhao sentencing on Tuesday, April 30.
FX market still on intervention watch
Asian foreign exchange traders will be particularly attentive to any signs of Japanese intervention on Tuesday, following reports of Tokyo's involvement in the market on Monday. This intervention action propelled the yen upward from its 34-year low of 160 per dollar, setting off shockwaves of volatility.