USD/CAD REMAINS ON THE DEFENSIVE BELOW 1.3850 AMID FED INDEPENDENCE FEARS

USD/CAD REMAINS ON THE DEFENSIVE BELOW 1.3850 AMID FED INDEPENDENCE FEARS
USD/CAD REMAINS ON THE DEFENSIVE BELOW 1.3850 AMID FED INDEPENDENCE FEARS

USD/CAD REMAINS ON THE DEFENSIVE BELOW 1.3850 AMID FED INDEPENDENCE FEARS

The USD/CAD currency pair has been trading below the 1.3850 level, reflecting market concerns over potential political interference with the Federal Reserve's independence.

The USD/CAD pair has softened to around 1.3835 during the early Asian session on Tuesday, as fears over the Federal Reserve's independence weigh on the U.S. dollar.

President Donald Trump has intensified his public criticism of Federal Reserve Chairman Jerome Powell, labeling him a “major loser” and calling for immediate interest rate cuts to stimulate the economy.

Financial markets have reacted negatively to perceived political interference in monetary policy, leading to a sell-off in U.S. assets and a decline in the dollar's value.

The weakening of the U.S. dollar has provided support to the Canadian dollar, pushing the USD/CAD exchange rate lower.

The uncertainty surrounding U.S. monetary policy and the potential erosion of the Fed's independence have contributed to broader market volatility, affecting various asset classes.

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