- The USD/body earns positive traction for the third consecutive day in the middle of a modest strength of the USD.
- US fiscal concerns and Fed fees cutting bets could limit USD earnings and cash prices.
- Operators also refrain from aggressive bets before the Minutes of the FOMC meeting.
It is observed that the USD/CAD torque prolongs the moderate recovery movement of this week from the area of ​​1,3685, or its lowest level since October 2024, for the third consecutive day on Wednesday. Current cash prices are traded near the weekly maximum, around the region of 1,3835-1.3840, with an increase of almost 0.30% in the day in the middle of some purchases of continuation of the US dollar (USD).
Tuesday’s optimistic economic data on Tuesday helped to calm the recession fears and attend the USD (DXY) index, which tracks the value of the dollar against a foreign exchange basket, to consolidate the night rebound from the proximity of the monthly minimum. This, in turn, provides support to the USD/CAD pair, although a combination of factors justifies some caution for USD bullish and the position for new profits.
Investors remain on alert to the growing concerns about the deteriorated fiscal condition of the USA. The operators could also choose to wait for the publication of the Minutes of the FOMC meeting to obtain clues about the Fed Rate Cutting Trajectory.
This week’s US economic agenda also highlights the publication of the preliminary GDP of the first quarter and the Personal Consumption Expenditure Index (PCE) on Thursday and Friday, respectively. This, together with the monthly publication of the Canadian GDP and the prices of crude oil, could influence the Canadian dollar (CAD) linked to raw materials and provide a new impulse to the USD/CAD pair during the second half of the week.
Meanwhile, the Canadian underlying inflation figures higher than expected faded the hopes of an interest rate cut by the Canada Bank (BOC) in June. This, together with a modest rebound in crude oil prices, could support the Canadian dollar (CAD) and limit the appreciation of the USD/CAD. Therefore, it will be prudent to expect a strong purchase impulse before confirming that cash prices have formed a short term minimal.
Economic indicator
FOMC minutes
The Federal Open Market Committee (FOMC) organizes eight meetings per year and reviews the financial and economic conditions to determine the appropriate position on monetary policy. It also evaluates existing risks on long -term price stability objectives and sustainable economic growth. The elders of the FOMC publishes them the Board of Governments of the Federal Reserve System And it is a clear guide on interest rates in the United States. A change in this report affects the volatility of the dollar. If the minutes show a firm perspective, this will be considered as bullish for the dollar.
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Next publication:
MIÉ MAY 28, 2025 18:00
Frequency:
Irregular
Dear:
–
Previous:
–
Fountain:
Federal Reserve
The minutes of the Federal Open Market Committee (FOMC) are generally published three weeks after the day of the Policy Decision. Investors seek clues about policy perspectives in this publication along with the divided vote. It is likely that a bullish tone provides an impulse to the dollar, while a moderate posture is considered negative for the USD. It should be noted that market reaction to FOMC minutes could be delayed since the media do not have access to publication before launch, unlike the FOMC policy declaration.
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.
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