The USD/CAD pair is showing signs of strength during the Asian session, driven by USD buying interest and subdued Crude Oil prices. Currently trading around 1.3565, the pair is up slightly for the day but remains below the 200-day Simple Moving Average (SMA). Crude Oil prices are struggling to rebound from recent lows due to concerns about a slowdown in China, the world’s largest importer. This has led to flat imports in August, signaling weak domestic demand and undermining the Loonie. On the other hand, the USD is receiving support from reduced expectations of a larger interest rate cut by the Fed, following the mixed US Nonfarm Payrolls report. Traders are now awaiting BoC Governor Tiff Macklem’s speech and the upcoming US CPI data for further cues on the USD/CAD pair’s direction.
The upcoming US Consumer Price Index (CPI) release on Wednesday, followed by the Producer Price Index (PPI) on Thursday, will be crucial in shaping market expectations for the Fed’s interest rate cut and USD demand. Additionally, the Oil price dynamics will also play a key role in determining the next move for the USD/CAD pair. Investors are advised to stay informed and cautious in the current market environment.
Economic Indicator: BoC’s Governor Macklem speech
Tiff Macklem, the Governor of the Bank of Canada, is set to deliver a speech that could have significant implications for the market. Macklem, who took office in June 2020, has a strong background in finance and economics, previously serving as the Dean of the Rotman School of Management at the University of Toronto. His insights and comments could provide valuable insights for traders and investors.
Next Release: Tue Sep 10, 2024 12:25 | Source: Bank of Canada