USD/CAD gains ground above 1.3750 as traders pare back Fed rate cut expectation
11.06.2024, 01:00

USD/CAD gains ground above 1.3750 as traders pare back Fed rate cut expectation

  • USD/CAD holds positive ground near  1.3765 amid firmer US Dollar. 
  • US Fed is expected to maintain interest rates steady in the range of 5.25%-5.50 in its June meeting on Wednesday
  • The lower crude oil prices weigh on the commodity-linked Loonie, lifting the pair higher. 

The USD/CAD pair trades in the positive territory around 1.3765 amid the renewed US Dollar (USD) demand on Tuesday during the early Asian trading hours. Meanwhile, the decline in crude oil prices undermines the commodity-linked Loonie and creates a tailwind for USD/CAD. 

The robust US employment data for May pared back rate cut expectations from the Federal Open Market Commit (FOMC). Traders are now pricing in nearly 47% chances of a rate cut for the September meeting, down from 68% before the NFP data, according to the CME FedWatch tool. At the June monetary meeting on Wednesday, the US Federal Reserve (Fed) is expected to maintain interest rates steady in the range of 5.25%-5.50 to curb inflation towards the Fed’s 2% target. 

The US Consumer Price Index (CPI) inflation data on Wednesday might offer some hints about the inflation trajectory and future monetary policy outlook. The US headline and CPI figure are estimated to show an increase of 3.4% YoY abd e 3.5% YoY in May. 

Meanwhile,  Crude Oil prices edge lower as OPEC ministers said that they would not increase supply if prices remained weak. It's worth noting that  Canada is the dominant source of crude oil imports for the United. States and higher oil prices generally underpin the Canadian Dollar (CAD). 

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

 

 

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