- USD/CAD recovered to near 1.3700 after the US Dollar rebounded strongly.
- A delay in Israel’s planned ground attack in Gaza has eased the broader risk-off mood.
- The BoC is expected to keep interest rates unchanged at 5%.
The USD/CAD pair recovers from 1.3660 and recaptures the round-level resistance of 1.3700 in the late London session. The Loonie asset finds support as the US Dollar rebounds after discovering buying interest near 105.40.
Investors rush for the US Dollar and long-term bond yields as the focus shifts to the crucial United States economic data, which will be released this week. The US Dollar Index (DXY) has come closer to 106.00. The 10-year US Treasury yields rose sharply to 4.86%.
S&P500 futures generated significant gains in the European session, portraying a sharp revival in the risk appetite of the market participants. A delay in Israel’s planned ground attack in Gaza has eased the broader risk-off mood.
Investors await the speech from Federal Reserve (Fed) Chair Jerome Powell, which is scheduled for Wednesday. Jerome Powell is expected to reiterate the need to keep interest rates higher for a longer period to ensure the achievement of price stability. He is expected to keep hopes of further policy tightening alive if the US economy continues to remain resilient.
In the late New York session, the US S&P Global preliminary PMI for October will be keenly watched. As per the estimates, the Manufacturing PMI dropped to 49.5 against September’s reading of 49.8. The Services PMI is seen declining marginally below the 50.0 threshold to 49.9 versus the former release of 50.1.
On the Canadian Dollar front, the focus will be on the interest rate decision by the Bank of Canada (BoC), which is scheduled for Wednesday. The BoC is expected to keep interest rates unchanged at 5% as the Canadian economy is struggling for a firm footing amid a vulnerable demand outlook.
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 stays heavy under 0.6150 after China's inflation data
AUD/USD is deep in the red below 0.6150 in Thursday's Asian trading, reversing the previous recovery led by US President Trump's decision for an immediate 90-day tariff pause for many countries. However, escalaitng US-China trade war and Chinese disinflation remain a drag on the Aussie pair.
USD/JPY tumbles below 147.00, awaits US CPI for fresh impetus
USD/JPY has come under intense selling presure and drops below 147.00 in the Asian session on Thursday. The US-China trade war escalation and the divergent BoJ-Fed policy expectations underpin the Japanese Yen and weigh heavily on the pair amid a renewed US Dollar downtick. US CPI awaited.
Gold sticks to gains near $3,1000 amid escalating US-China trade tensions
Gold price extends the previous rebound to trade near $3,100 in the Asian session on Thursday. The safe-haven demand amid escalating trade tensions between the United States and China provides some support to the precious metal but the further upside appears elusive ahead of US CPI data.
Senate approves Paul Atkins as new SEC Chair
The Senate voted 52-44 on Wednesday to approve Paul Atkins as the new SEC Chair. The news could improve sentiment in the crypto market, considering Atkins has previously advocated for better crypto regulations and served as an advisor to crypto companies.
Tariff rollercoaster continues as China slapped with 104% levies
The reaction in currencies has not been as predictable. The clear winners so far remain the safe-haven Japanese yen and Swiss franc, no surprises there, while the euro has also emerged as a quasi-safe-haven given its high liquid status.
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.