Created
: 2024.04.22
2024.04.22 11:51
USD/CAD continues its decline for the fourth consecutive session, hovering around 1.3720 during Asian trading hours on Monday. This downward movement may be attributed to the subdued performance of the US Dollar (USD) despite the rise in US Treasury yields. However, the downside potential for the USD/CAD pair could be limited due to comments from Federal Reserve (Fed) officials hinting at a shift towards a more hawkish stance.
However, the Canadian Dollar's (CAD) gains may face limitations due to lower crude Oil prices, considering Canada's status as the largest oil exporter to the United States (US). West Texas Intermediate (WTI), the US crude Oil benchmark, trades around $81.50, reflecting a 0.66% decline on Monday, by the press time.
According to the Reuters report, the Iranian authorities have downplayed rumors regarding a drone attack by Israel. With no imminent threat of escalation in the conflict, the immediate risk aversion has gradually subsided, putting pressure on the USD/CAD pair.
Furthermore, data from Canada indicates a softening inflationary trend, underscoring the divergent monetary policy outlook between the Bank of Canada (BoC) and the US Federal Reserve (Fed). While interest rates in Canada are anticipated to decrease in the summer amid declining inflation and slower growth, the situation is increasingly different in the United States (US).
From the Federal Reserve's officials, Chicago Fed President Austan Goolsbee remarked on Friday that progress on inflation had "stalled," and the Federal Reserve's current restrictive monetary policy is appropriate. Meanwhile, Atlanta Fed President Raphael Bostic stated that the US central bank would refrain from cutting interest rates until the end of the year.
Created
: 2024.04.22
Last updated
: 2024.04.22
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy