The USD/CAD pair is trading around 1.3680 in Friday’s early European session with the USD Index also holding positive ground. There is anticipation for the final reading of the US Consumer Price Index (CPI) on Wednesday, which is expected to show a slight increase. Some Federal Reserve officials have expressed caution in considering a rate cut, waiting for evidence that inflation is on a downward trajectory. This stance contributes to the strength of the Greenback and supports the USD/CAD pair. On the other hand, the Canadian economy added 90,000 jobs in April, surpassing the consensus of 20,000 gains. The resilience of the labor market provides the Bank of Canada with more time to assess the situation, while the decline in crude oil prices puts pressure on the Canadian Dollar due to Canada’s status as a leading oil exporter.
The USD/CAD pair is gaining ground near 1.3680 as the USD Index remains steady around 105.30. Federal Reserve officials are cautious about cutting rates, waiting for clear evidence that inflation is decreasing. Dallas Fed President Lorie Logan stated that it is uncertain if monetary policy is tight enough to bring inflation down to the target of 2%, and it is premature to consider reducing interest rates. San Francisco Fed President Mary Daly emphasized the importance of maintaining restrictive policy to achieve inflation targets. Minneapolis Fed President Neel Kashkari is adopting a “wait-and-see” approach, setting a high bar for increasing rates to address inflation. This cautious attitude from Fed officials supports the Greenback and boosts the USD/CAD pair. Additionally, the Canadian economy added 90,000 jobs in April, exceeding expectations and demonstrating the resilience of the labor market. However, the decline in oil prices is putting pressure on the Canadian Dollar, given Canada’s role as a major oil exporter.
The USD/CAD pair is trading around 1.3680 in the early European session on Friday, with the USD Index holding steady at 105.30. Federal Reserve officials are waiting for clear evidence that inflation is trending downward before considering a rate cut. Dallas Fed President Lorie Logan expressed uncertainty about the effectiveness of the current monetary policy in reducing inflation to the target of 2%. San Francisco Fed President Mary Daly stressed the importance of continued restrictive policy to achieve inflation goals. Minneapolis Fed President Neel Kashkari is adopting a cautious approach, indicating a high bar for raising rates to combat inflation. This cautious stance from the Fed provides support for the Greenback and boosts the USD/CAD pair. Additionally, the Canadian economy added 90,000 jobs in April, surpassing expectations and indicating the strength of the labor market. However, the decline in oil prices is weighing on the Canadian Dollar due to Canada’s status as a major oil exporter.
In the early European session on Friday, the USD/CAD pair is trading near 1.3680 with the USD Index maintaining its position at 105.30. Federal Reserve officials are cautious about cutting rates, waiting for clear evidence of a slowdown in inflation. Dallas Fed President Lorie Logan highlighted the uncertainty surrounding the effectiveness of current monetary policy in bringing inflation down to the target of 2%. San Francisco Fed President Mary Daly emphasized the need for prolonged restrictive policy to achieve inflation objectives. Minneapolis Fed President Neel Kashkari is taking a cautious approach, indicating a high threshold for increasing rates to address inflation. This cautious stance from Fed officials supports the Greenback and strengthens the USD/CAD pair. Moreover, the Canadian economy added 90,000 jobs in April, exceeding expectations and showcasing the robustness of the labor market. However, the drop in oil prices is exerting downward pressure on the Canadian Dollar, as Canada is a key oil exporter to the US.
The USD/CAD pair is making gains near 1.3680 in the early European session on Friday, with the USD Index steady at 105.30. Federal Reserve officials are adopting a cautious approach to rate cuts, waiting for clear signs of a decline in inflation. Dallas Fed President Lorie Logan expressed doubts about the adequacy of current monetary policy in bringing inflation down to the 2% target. San Francisco Fed President Mary Daly stressed the importance of maintaining restrictive policy to achieve inflation objectives. Minneapolis Fed President Neel Kashkari is adopting a wait-and-see approach, emphasizing the need for a high threshold for raising rates to combat inflation. This prudent stance from the Fed lends support to the Greenback and strengthens the USD/CAD pair. Additionally, the Canadian economy added 90,000 jobs in April, surpassing expectations and highlighting the resilience of the labor market. However, the drop in oil prices is putting downward pressure on the Canadian Dollar, given Canada’s role as a significant oil exporter to the United States.
