USD/CAD depreciates to near 1.3560 on higher Crude oil prices, US Manufacturing PMI eyed
|- USD/CAD loses ground as WTI oil price improves to near $78.10 during the Asian hours.
- Canadian Dollar might have received support on the upbeat Canadian GDP Annualized.
- CME FedWatch Tool suggests the probability of rate cuts in March is at 3.0%.
USD/CAD breaks the winning streak that began on February 23, which could be attributed to the improved Crude oil prices as Canada is the largest oil exporter to the United States (US). The pair edges lower to near 1.3560 during the Asian session on Friday.
Additionally, upbeat Canada’s Gross Domestic Product (GDP) Annualized might have provided some support to underpinning the Canadian Dollar (CAD). The data reported a growth of 1.0% in the fourth quarter of 2023. The market expectation was an increase of 0.8% against the previous decline of 0.5%. Moreover, GDP (QoQ) rose by 0.2% against the previous decline of 0.1%.
The West Texas Intermediate (WTI) oil price is showing improvement, nearing $78.10, as speculation arises regarding the potential extension of supply cuts by the Organization of the Petroleum Exporting Countries and its allies (OPEC+) and ongoing tensions in the Middle East.
Recent data, including Gross Domestic Product (GDP) figures and the US Personal Consumption Expenditures - Price Index from the United States (US), has led to a postponement in market expectations for the Federal Reserve's (Fed) first-rate cut. This has provided support for the US Dollar (USD). Investors are now awaiting the final US S&P Global Manufacturing PMI for February, scheduled for release on Friday.
According to the CME FedWatch Tool, the probability of rate cuts in March is at 3.0%, with expectations decreasing to 23.1% in May and increasing to 52.2% in June. Atlanta Fed President Raphael W. Bostic commented that recent inflation data indicates a challenging path toward achieving the central bank's 2% inflation target. Moreover, Chicago Fed President Austan Dean Goolsbee anticipates the first-rate cuts later this year but refrained from specifying the exact timeline.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.