- USD/CAD extends its losses for the third consecutive day as the US Dollar halts its gains.
- WTI price hovers with a positive sentiment on resilience in the US economy.
- FOMC embarks on its two-day policy meeting on Tuesday; US CPI for November will also be eyed.
USD/CAD continues its losing streak for the third successive day as the US Dollar Index (DXY) turns negative post two days of gains. The USD/CAD pair trades lower around 1.3560 during the Asian session on Tuesday. Moreover, Crude oil prices hold steady after a three-day winning streak, potentially providing support for the Canadian Dollar (CAD).
West Texas Intermediate (WTI) trades near $71.70 per barrel during the Asian session on Tuesday. Oil prices saw an upswing following last week's data release, signaling a level of resilience in the United States (US) economy.
However, Crude oil prices could encounter challenges due to ongoing concerns about global demand, especially with weak economic data from China, the world's largest oil importer, and other major economies. Additionally, worries persist about oversupply, despite production cuts imposed by OPEC+ members.
The US Dollar Index (DXY) loses ground amid stable US Treasury yields. The DXY bids lower below 104.00 at the time of writing. The US Dollar gained momentum from robust employment figures in the United States (US).
As the Federal Open Market Committee (FOMC) embarks on its two-day monetary policy meeting on Tuesday, the consensus expectation is for interest rates to remain unchanged. Market participants will closely scrutinize the statement for any indications regarding potential rate adjustments in the coming year.
Additionally, Tuesday will be marked by the release of the US Consumer Price Index (CPI) report for November, offering insights into potential paths for monetary policy. In Canada, the Bank of Canada (BoC) Governor Tiff Macklem's appearance is scheduled for Friday. This event could be significant, and market participants will likely pay close attention to any insights or comments regarding the Canadian economic outlook and monetary policy.
(The story was corrected at 09:00 GMT on Tuesday to say, in the first bullet point, that USD/CAD extends its losses, not gains.)
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD looks at the RBA for near-term direction
AUD/USD resumed its rebound and briefly surpassed the 0.6600 barrier on the back of the renewed and marked resurgence of the downward bias in the US Dollar. Investors, in the meantime, expect the RBA to keep its rates unchanged on Tuesday.
EUR/USD: Price action hinges on the US election and the Fed
EUR/USD managed to trespass the key 1.0900 hurdle and print new highs following the Greenback’s offered stance as investors warmed up for the US election and the FOMC event later in the week.
Gold trades around $2,730
Gold price is on the defensive below $2,750 in European trading on Monday, erasing the early gains. The downside, however, appears elusive amid the US presidential election risks and the ongoing Middle East geopolitical tensions.
Ethereum Price Forecast: ETH struggles below $2,500 amid State of Michigan pension fund investment in ETH ETF
Ethereum (ETH) is trading near $2,420, down about 1% on Monday, but could bounce off a key descending trendline close to the $2,258 historically high demand zone.
US presidential election outcome: What could it mean for the US Dollar? Premium
The US Dollar has regained lost momentum against its six major rivals at the beginning of the final quarter of 2024, as tensions mount ahead of the highly anticipated United States Presidential election due on November 5.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.