- USD/CAD moves higher due to the market caution before US data.
- US Treasury Secretary Yellen disagrees with Moody's decision to cut its outlook on US debt.
- CAD fails to cheer the improved Crude oil prices.
- WTI price strengthened on OPEC’s monthly report, stating market fundamentals remained strong.
USD/CAD bids higher around 1.3810 during the Asian session on Tuesday, extending gains for the second successive session. However, the US Dollar (USD) grapples with challenges as it struggles to halt losses. The Greenback could face headwinds from the volatile US bond yields. However, it seems that market participants adopt a cautious stance before US inflation data, which contributes support to underpinning the USD/CAD pair.
US Treasury Secretary Janet Yellen showed confidence in the resilience of the US economy despite the concerns raised by the credit rating agency “Moody”. She has expressed disagreement with Moody's decision last week to cut its outlook on US debt. Secretary Yellen also stated at the close of the APEC Finance Ministers' Meeting in San Francisco, California that the US economy is strong, and the Treasury market is both safe and liquid. Moody's decision to lower its outlook on the US credit rating to "negative" from "stable" is based on concerns about large fiscal deficits and a decline in debt affordability.
The upcoming US inflation data on Tuesday is indeed a key event for investors, and it's likely to influence the trajectory of the USD/CAD pair. Federal Reserve (Fed) officials have emphasized that further tightening will depend on the data. If the inflation data comes in line with expectations, it might convince investors to believe that the Fed’s interest rate hikes are completed.
On the other side, the Canadian Dollar (CAD) seems to fail to cheer on the improved Crude oil prices. West Texas Intermediate (WTI) Crude price continues the winning streak, trading higher around 78.50 at the time of writing. OPEC in its monthly report said that market fundamentals remained strong, which reinforces the Crude oil prices. Additionally, the US cracks down on Russian oil exports, which concerns supplies.
Toni Gravelle, as a Deputy Governor of the Bank of Canada (BoC), is set to deliver talking points during a panel discussion titled "Challenges for Financial Stability and Financial Regulation amid Heightened Uncertainty." This discussion is likely to shed light on the perspectives and insights of the BoC regarding the current economic scenario and challenges in the realm of financial stability and regulation.
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 drifts lower toward 0.6300; looks to US NFP for fresh impetus
AUD/USD heads toward 0.6300 early Friday, resuming the pullback from near 0.6400. The pair remains on a slippery slope despite a weaker US Dollar. US-China trade tensions and increased odds of Trump's tariffs-led global recession undermine the risk-sensitive Aussie. All eyes on US NFP and Powell.
USD/JPY holds recovery near 146.00; upside seems limited ahead of US NFP
USD/JPY trades close to 146.00, holding its recovery in the Asian session on Friday. Investors dial down bets of aggressive BoJ rate hikes, amid worries that Trump's new tariffs could negatively impact Japan's economy, helps the pair sustain its latest upswing. But buyers remain wary ahead of US NFP and Powell.
Gold turns south toward $3,100, all eyes on US NFP and Powell
Gold price returns to the red, eyeing $3,100 again in the Asian session on Friday after facing some profit-taking in the previous session. Escalating concerns over a global trade war and a US recession boost the Gold price, a traditional safe-haven asset. The focus now stays on the US NFP data and Powell's speech.
What to expect from Bitcoin and XRP following Trump tariffs: Experts weigh in
Bitcoin stretched its decline on Thursday, briefly dropping below $83,000 as President Trump's newly announced reciprocal tariffs extended the crypto market downturn by over 4%. The sustained decline and high volatility highlight Bitcoin's increasing risk to macroeconomic uncertainties.
Trump’s “Liberation Day” tariffs on the way
United States (US) President Donald Trump’s self-styled “Liberation Day” has finally arrived. After four straight failures to kick off Donald Trump’s “day one” tariffs that were supposed to be implemented when President Trump assumed office 72 days ago, Trump’s team is slated to finally unveil a sweeping, lopsided package of “reciprocal” tariffs.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.