- USD/CAD corrects from 1.3600 as investors await comments from Fed Powell in Jackson Hole.
- Whether Jerome Powell will advocate raising interest rates or offer neutral guidance is still a mystery.
- Canadian consumer spending grew 0.1% in June, in line with the previous reading.
The pair USD/CAD finds some selling pressure near the crucial resistance of 1.3600 in the London session. The pair corrects to near 1.3570 as investors remain mixed on Federal Reserve (Fed) Chairman Jerome Powell’s speech at the Jackson Hole Symposium.
S&P 500 futures have added decent gains in Europe, reflecting some improvement in market participants’ risk appetite. However, the market mood could turn cautious as Fed’s Powell is expected to take center stage in Jackson Hole ahead of schedule.
The Dollar Index (DXY) corrected from the 11-week high at 104.26 as investors are on the sidelines due to uncertainty over Powell’s speech from the Fed. Whether Jerome Powell will advocate raising prices further is still a mystery. interest rates to tighten its grip on stubborn inflation or give a deadline until interest rates hold steady at 5.25-5.50%. Meanwhile, 10-year US Treasury yields have dipped to around 4.24%.
The dollar could continue to rise if Fed Chairman Powell offers hawkish guidance on interest rates. Inflationary pressures in the US economy above the target rate are extremely stubborn as the job market remains tight and consumer spending is quite good.
However, Fed policy makers Boston Fed President Susan Collin and Philadelphia Fed President Patrick Harker commented Thursday that the current level of interest rates is sufficient to do the job required. .
The Canadian dollar failed to show action on Thursday despite the nominal expansion in the monthly retail sales data for June. Consumer Spending grew 0.1% in June, in line with the previous reading, as investors anticipated a plateau. The highest consumer spending was on automobiles, while discretionary spending remained weak.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
