USDCAD Faces Pressure Near 1.3600 as Fed Policy Plays a Crucial Role

Wednesday, 18 September 2024, 06:37

USDCAD is under pressure near 1.3600 as inflation concerns rise with the Fed's decisions approaching. Investors are focused on Fed's potential rate cuts and the BOC's moves. The upcoming Fed policy meeting is critical for market dynamics.
Fxstreet
USDCAD Faces Pressure Near 1.3600 as Fed Policy Plays a Crucial Role

USD/CAD is experiencing significant pressure below 1.3600 as the US Dollar weakens ahead of the crucial Fed policy meeting. Inflation remains a key concern, and investors are closely watching the potential size of the Fed's rate cut and subsequent dot plot implications.

Inflation Trends and the Fed's Decision

The upcoming Federal Reserve meeting is set to be a pivotal moment for the USD/CAD pair. With the Fed's rate cuts expected, market participants anticipate shifts in dollar confidence.

Bank of Canada's Upcoming Moves

On the other hand, the Bank of Canada (BOC) is also expected to cut interest rates again in October. This could further affect the USDCAD exchange rate as monetary policies from both sides of the border play significant roles.

  • US Dollar Weakness impacting USDCAD
  • Inflation concerns influencing Fed's decisions
  • Pivotal Fed meeting to shape market perceptions

This interplay of inflation, Fed actions, and the BOC's strategies creates a highly dynamic atmosphere for traders monitoring the USDCAD currency pair.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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