USD/CAD CONSOLIDATES BELOW 1.3900 AS FED AND TRADE POLICY RISKS LOOM
USD/CAD CONSOLIDATES BELOW 1.3900 AS FED AND TRADE POLICY RISKS LOOM
The USD/CAD currency pair has been trading within a narrow range around 1.3800, following a dip to six-month lows earlier in the week.
This consolidation reflects investor caution ahead of key developments in U.S. monetary policy and global trade dynamics.
Investors are closely monitoring the U.S. Federal Reserve's stance on interest rates.
While the Fed has signaled a cautious approach, concerns persist about the potential for prolonged high rates, which could impact economic growth and investor sentiment.
Ongoing trade tensions, particularly between the U.S. and its major trading partners, continue to pose risks to the global economy.
These uncertainties contribute to market volatility and affect currency valuations, including the Canadian dollar.
The Canadian dollar is influenced by fluctuations in oil prices, as Canada is a major oil exporter.
Recent recoveries in oil prices have provided support to the CAD, counteracting some of the downward pressure from U.S. dollar strength.
The USD/CAD pair remains below the 1.3900 resistance level, indicating a neutral short-term trend.
