- USD/CAD kicks off the new week on a weaker note amid a bearish US Dollar.
- Bets for a 50 bps Fed rate cut and a positive risk tone weighs on the Greenback.
- Sliding Oil prices could undermine the Loonie and help limit any further losses.
The USD/CAD pair struggles to capitalize on its modest gains registered over the past two days and attracts fresh sellers during the Asian session on Monday. Spot prices, however, manage to hold above the 1.3565 support zone, warranting some caution before positioning for any meaningful pullback from a three-week high touched last Wednesday.
The US Dollar (USD) languishes near the year-to-date (YTD) low amid rising bets for a more aggressive policy easing by the Federal Reserve (Fed), bolstered by signs of easing inflationary pressures in the US. Apart from this, a generally positive tone around the equity markets is seen denting demand for the safe-haven Greenback and exerting some downward pressure on the USD/CAD pair. The downside, however, seems cushioned in the wake of weaker Crude Oil prices, which tends to undermine the commodity-linked Loonie.
The worse-than-expected Chinese macro data released over the weekend raises concerns about a slowing fuel demand in the world's second-largest economy and the world's top oil importer. This, in turn, fails to assist Crude Oil prices to capitalize on last week's recovery from the lowest level since May 2023. Furthermore, hopes for additional interest rate cuts by the Bank of Canada (BoC) might keep a lid on any meaningful appreciating move for the Canadian Dollar (CAD) and lend support to the USD/CAD pair.
Traders might also refrain from placing aggressive bets and prefer to move to the sidelines ahead of this week's key central bank event risk – the outcome of the highly-anticipated FOMC meeting on Wednesday. The US central bank is widely anticipated to lower its borrowing costs, though investors remain divided over the size of the rate cut. Hence, the crucial decision, along with the Fed's policy outlook, will play a key role in influencing the USD price dynamics and determining the next leg of a directional move for the USD/CAD pair.
US Dollar PRICE Today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Canadian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.26% | -0.29% | -0.48% | -0.21% | -0.32% | -0.27% | -0.22% | |
| EUR | 0.26% | -0.09% | -0.26% | 0.00% | -0.12% | -0.08% | -0.00% | |
| GBP | 0.29% | 0.09% | -0.24% | 0.09% | -0.04% | 0.02% | 0.09% | |
| JPY | 0.48% | 0.26% | 0.24% | 0.27% | 0.21% | 0.21% | 0.20% | |
| CAD | 0.21% | -0.01% | -0.09% | -0.27% | -0.19% | -0.07% | -0.12% | |
| AUD | 0.32% | 0.12% | 0.04% | -0.21% | 0.19% | 0.05% | 0.11% | |
| NZD | 0.27% | 0.08% | -0.02% | -0.21% | 0.07% | -0.05% | 0.07% | |
| CHF | 0.22% | 0.00% | -0.09% | -0.20% | 0.12% | -0.11% | -0.07% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
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
EUR/USD stays below 1.0550 after mixed US data
EUR/USD stays under modest bearish pressure and trades below 1.0550 in the American session. Although the US Dollar struggles to gather strength following mixed macroeconomic data releases, the risk-averse market environment doesn't allow the pair to gain traction.
GBP/USD recovers modestly, trades near 1.2650
GBP/USD stabilizes near 1.2650 after falling toward 1.2600 earlier in the day. Nevertheless, the pair struggles to gather bullish momentum as the deepening Russia-Ukraine conflict causes investors to stay away from risk-sensitive assets.
Gold extends gains beyond $2,660 amid rising geopolitical risks
Gold extends its bullish momentum further above $2,660 on Thursday. XAU/USD rises for the fourth straight day, sponsored by geopolitical risks stemming from the worsening Russia-Ukraine war. Markets await comments from Fed policymakers.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
A new horizon: The economic outlook in a new leadership and policy era
The economic aftershocks of the COVID pandemic, which have dominated the economic landscape over the past few years, are steadily dissipating. These pandemic-induced economic effects are set to be largely supplanted by economic policy changes that are on the horizon in the United States.
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.