USD/CAD flattens around 1.3850 as US Dollar looks for firm-footing
- USD/CAD consolidates around 1.3850 as investors seek to gain ground after remaining on the backfoot in the last two weeks.
- The outlook of the US Dollar remains uncertain as Trump attacks on Fed’s independence.
- Trump has slammed Fed Powell for not reducing interest rates.
The USD/CAD pair trades flat around 1.3850 during North American trading hours on Tuesday. The Loonie pair turns sideways after posting a fresh six-month low near 1.3800 as the US Dollar (USD) looks for a cushion after having a downside run in the last two weeks.
The US Dollar Index (DXY), which gauges the Greenback’s value against six major currencies, attracts some bids after refreshing a three-year low at 98.00 and rebounds to near 98.50 during North American trading hours.
However, investors brace for more weakness in the US Dollar as the assault on the Federal Reserve’s (Fed) independence by United States (US) President Donald Trump and uncertainty over trade relations between Washington and Beijing. These events have forced financial market participants to doubt the safe-haven appeal of the US Dollar.
Donald Trump has criticized Fed Chairman Jerome Powell for not lowering interest rates and has blamed that the economy could enter a slowdown if borrowing rates are not reduced immediately.
Meanwhile, Trump has announced a 90-day pause in the execution of reciprocal tariffs, which were announced on April 2 but retained on China for retaliation and counter-tariffs. While the trade war will remain between the US and China, the stand-off will impact globally.
On Tuesday, the Canadian Dollar (CAD) trades firmly against a majority of its peers as investors expect the Bank of Canada (BoC) to maintain a “neutral” stance on the monetary policy outlook. The BoC held interest rates steady at 2.75% last week amid a lack of clarity on how new international policies by Donald Trump will shape the global economic outlook.
This week, investors will focus on the Canadian Retail Sales data for February, which will be released on Friday.
Canadian Dollar PRICE Today
The table below shows the percentage change of Canadian Dollar (CAD) against listed major currencies today. Canadian Dollar was the strongest against the Swiss Franc.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.24% | -0.08% | -0.14% | -0.02% | 0.33% | 0.01% | 0.42% | |
| EUR | -0.24% | -0.33% | -0.37% | -0.30% | 0.04% | -0.24% | 0.17% | |
| GBP | 0.08% | 0.33% | -0.08% | 0.02% | 0.38% | 0.09% | 0.49% | |
| JPY | 0.14% | 0.37% | 0.08% | 0.11% | 0.45% | 0.23% | 0.61% | |
| CAD | 0.02% | 0.30% | -0.02% | -0.11% | 0.35% | 0.04% | 0.43% | |
| AUD | -0.33% | -0.04% | -0.38% | -0.45% | -0.35% | -0.30% | 0.11% | |
| NZD | -0.01% | 0.24% | -0.09% | -0.23% | -0.04% | 0.30% | 0.42% | |
| CHF | -0.42% | -0.17% | -0.49% | -0.61% | -0.43% | -0.11% | -0.42% |
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 Canadian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent CAD (base)/USD (quote).
Author
Sagar Dua
FXStreet
Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.
