- USD/CAD struggles to attract significant buyers amid broad-based USD weakness.
- Expectations of a further rate cut by the Fed, coupled with a positive risk tone, are weighing heavily on the dollar.
- The strong recovery in oil prices this week is benefiting the CAD and acting as a headwind.
The USD/CAD pair reverses a modest decline in the Asian session and is currently trading around the 1.3575 region, virtually unchanged on the day, although any meaningful appreciating move still seems elusive.
The US Dollar (USD) fell to its lowest level in more than a week amid rising expectations of an interest rate cut by the Federal Reserve (Fed) next week, boosted by signs of easing inflationary pressures in the US. Indeed, data released on Thursday showed that the annual headline Producer Price Index (PPI) slowed to 1.7% from the previous month’s downwardly revised reading of 2.1%. Moreover, the core PPI, which excludes volatile food and energy prices, missed consensus estimates and came in at 2.4% year-on-year during the reported month.
Markets reacted quickly and are now pricing in a more than 40% chance that the US central bank will cut borrowing costs by 50 basis points at its September 17-18 policy meeting. This keeps US Treasury yields depressed near the 2024 low, which, together with a positive risk tone, weighs on the USD and acts as a headwind for the USD/CAD pair. Moreover, the good recovery in crude oil prices this week, from the lowest level since June 2023, should benefit the commodity-linked CAD and help cap spot prices.
Market participants are now looking forward to Friday’s economic docket, which includes the release of the preliminary Michigan Consumer Sentiment Index in the US and second-tier data from Canada. In addition to this, US bond yields and broader risk sentiment could influence the demand for the USD, which, along with oil price dynamics, could allow traders to take advantage of short-term opportunities around the USD/CAD pair. Nevertheless, spot prices look set to post modest weekly gains, although bulls need to wait for acceptance above the 1.3600 level before opening fresh positions.
US Dollar PRICE Today
The table below shows the percentage change of the US Dollar (USD) against major currencies today. The US Dollar was the strongest currency against the Australian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.11% | -0.17% | -0.61% | -0.04% | -0.03% | -0.04% | -0.20% | |
| EUR | 0.11% | -0.08% | -0.50% | 0.05% | 0.07% | 0.13% | -0.09% | |
| GBP | 0.17% | 0.08% | -0.43% | 0.11% | 0.14% | 0.22% | -0.03% | |
| JPY | 0.61% | 0.50% | 0.43% | 0.57% | 0.57% | 0.63% | 0.42% | |
| CAD | 0.04% | -0.05% | -0.11% | -0.57% | -0.01% | 0.10% | -0.16% | |
| AUD | 0.03% | -0.07% | -0.14% | -0.57% | 0.01% | 0.09% | -0.16% | |
| NZD | 0.04% | -0.13% | -0.22% | -0.63% | -0.10% | -0.09% | -0.25% | |
| CHF | 0.20% | 0.09% | 0.03% | -0.42% | 0.16% | 0.16% | 0.25% |
The heatmap shows percentage changes of major currencies. The base currency is selected from the left column, while the quote currency is selected from the top row. For example, if you choose the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change shown in the chart will represent the USD (base)/JPY (quote).
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.
