USD/CAD to keep moving up closer to 1.40 – MUFG

FXStreet Insights Team FXStreet

The Canadian dollar remains the second-best performing G10 currency year-to-date although it has traded on a weaker footing over the past month. Economists at MUFG Bank expect the USD/CAD to hover around the 1.40 level.

Fed remains on course to overtake Bank of Canada in rate hike cycle

“The BoC is expected to bring an earlier end to their rate hike cycle than the Fed reflecting in part expectations that Canada’s economy will prove more sensitive to rate hikes than the US economy given household debt is much more elevated in Canada.”

“We expect USD/CAD to keep moving up closer to 1.4000.”

“While the OPEC+’s recent decision to deliver larger production cuts helps to dampen downside risks for the price of oil, it will not fully ease concerns over a sharper slowdown/recession in Canada that’s been weighing more on CAD.”

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.

GBP/USD weakens below 1.3250 as UK Prime Minister Keir Starmer resigns

The GBP/USD pair loses ground to near 1.3245 during the early Asian trading hours on Tuesday. Political uncertainty in the United Kingdom continues to weigh on the British Pound against the US Dollar. The preliminary readings of the S&P Global Purchasing Managers Index from both the US and the UK are due later on Tuesday.

EUR/USD moves little amid market caution on ongoing US-Iran talks

EUR/USD steadies after registering modest losses in the previous day, trading around 1.1430 during the Asian hours on Tuesday. The currency pair remains locked in a tight range as traders closely monitor diplomatic developments surrounding ongoing talks between Washington and Tehran in Bürgenstock, Switzerland.

Gold defends $4,100, but for how long?

Gold is back in the red early Tuesday, having faced rejection once again at $4,200. The US Dollar holds at yearly highs amid hawkish Fed outlook, scepticism over US-Iran deal progress. Gold is primed to attack $4,100 as the daily technical setup remains in favor of sellers.

Bitcoin holds steady as ETF outflows decline – DEXE and TIA extend gains

Bitcoin hovers above $64,000 at press time on Tuesday, holding steady after a roughly 4% drop last week. Data shows that institutional outflows are easing, suggesting broader market recovery potential, while DeXe and Celestia have emerged as frontrunners over the last 24 hours.

Are American consumers actually “resilient“?

A common label gets placed upon American buyers: resilient. Just last week, Marianne Lake, the CEO of Consumer and Community Banking — and a member of the JPMorganChase Operating Committee — affirmed this sentiment. While she did note some weariness regarding future inflation’s effect on consumers, she reiterated the common adjective: resilient.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.