- Analytics
- News and Tools
- Market News
- USD/CAD flat lines around 1.3575 area amid dovish Fed inspired-USD selling bias
USD/CAD flat lines around 1.3575 area amid dovish Fed inspired-USD selling bias
- USD/CAD struggles to attract any meaningful buyers amid broad-based USD weakness.
- Bets for a larger Fed rate cut, along with a positive risk tone, weigh heavily on the buck.
- This week’s stronger recovery in Oil prices underpins the Loonie and acts as a headwind.
The USD/CAD pair reverses a modest Asian session dip and currently trades around the 1.3575 region, nearly unchanged for the day, though any meaningful appreciating move still seems elusive.
The US Dollar (USD) sinks to over a one-week low amid growing expectations for an oversized interest rate cut by the Federal Reserve (Fed) next week, bolstered by signs of easing inflationary pressures in the US. In fact, data published on Thursday showed that the annual headline Producer Price Index (PPI) decelerated to 1.7% from the previous month's downwardly revised reading of 2.1%. Adding to this, the core PPI, which excludes volatile food and energy prices, missed consensus estimates and came in 2.4% YoY during the reported month.
The markets were quick to react and are now pricing in over 40% chance that the US central bank will lower borrowing costs by 50 basis points at its policy meeting on September 17-18. This keeps the US Treasury bond yields depressed near the 2024 low, which, along with a positive risk tone, weighs on the USD and acts as a headwind for the USD/CAD pair. Furthermore, this week's goodish recovery in Crude Oil prices, from the lowest level since June 2023, should underpin the commodity-linked Loonie and contribute to capping spot prices.
Market participants now look forward to Friday's economic docket – featuring the release of the Preliminary Michigan US Consumer Sentiment Index and second-tier data from Canada. Apart from this, the US bond yields and the broader risk sentiment might influence the USD demand, which, along with Oil price dynamics, could allow traders to grab short-term opportunities around the USD/CAD pair. Nevertheless, spot prices seem poised to register modest weekly gains, though bulls need to wait for acceptance above the 1.3600 mark before placing fresh bets.
US Dollar PRICE Today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Australian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.11% | -0.17% | -0.61% | -0.04% | -0.03% | -0.04% | -0.20% | |
| EUR | 0.11% | -0.08% | -0.50% | 0.05% | 0.07% | 0.13% | -0.09% | |
| GBP | 0.17% | 0.08% | -0.43% | 0.11% | 0.14% | 0.22% | -0.03% | |
| JPY | 0.61% | 0.50% | 0.43% | 0.57% | 0.57% | 0.63% | 0.42% | |
| CAD | 0.04% | -0.05% | -0.11% | -0.57% | -0.01% | 0.10% | -0.16% | |
| AUD | 0.03% | -0.07% | -0.14% | -0.57% | 0.01% | 0.09% | -0.16% | |
| NZD | 0.04% | -0.13% | -0.22% | -0.63% | -0.10% | -0.09% | -0.25% | |
| CHF | 0.20% | 0.09% | 0.03% | -0.42% | 0.16% | 0.16% | 0.25% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
