- USD/CAD starts the new week on a weaker note amid a bearish Dollar.
- Expectations of a 50 basis point Fed rate cut and a positive risk tone weigh on the dollar.
- Falling oil prices could weaken the CAD and help limit losses.
The USD/CAD pair struggles to capitalize on its modest gains recorded over the past two days and attracts fresh sellers during the Asian session on Monday. However, the pair manages to hold above the 1.3565 support zone, which warrants some caution before positioning for any significant pullback from the three-week high reached last Wednesday.
The US Dollar (USD) is languishing near the yearly low amid rising expectations of more aggressive policy easing from the Federal Reserve (Fed), boosted by signs of easing inflationary pressures in the US. Adding to this, a generally positive tone around the equity markets seems to be denting the safe-haven demand for the Dollar and exerting some downward pressure on the USD/CAD pair. However, the fall seems to be cushioned in the wake of weak crude oil prices, which tends to weaken the commodity-linked CAD.
The worse-than-expected Chinese macroeconomic data released over the weekend raises concerns about a slowdown in fuel demand in the world’s second-largest economy and the world’s largest oil importer. This, in turn, fails to help crude oil prices capitalize on last week’s recovery from the lowest level since May 2023. Moreover, hopes for additional interest rate cuts by the Bank of Canada (BoC) could keep a lid on any significant appreciation move in the Canadian Dollar (CAD) and lend support to the USD/CAD pair.
Traders may also refrain from placing aggressive bets and prefer to move on the sidelines ahead of this week’s key central bank event risk – the outcome of the much-anticipated FOMC meeting on Wednesday. The US central bank is widely anticipated to lower its borrowing costs, although investors are divided on the size of the rate cut. Therefore, the crucial decision, along with the Fed’s policy outlook, will play a key role in influencing USD price dynamics and determining the next directional move of the USD/CAD pair.
US Dollar PRICE Today
The table below shows the exchange rate of the US Dollar (USD) against major currencies today. The US Dollar was the strongest currency against the Canadian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.26% | -0.29% | -0.48% | -0.21% | -0.32% | -0.27% | -0.22% | |
| EUR | 0.26% | -0.09% | -0.26% | 0.00% | -0.12% | -0.08% | -0.00% | |
| GBP | 0.29% | 0.09% | -0.24% | 0.09% | -0.04% | 0.02% | 0.09% | |
| JPY | 0.48% | 0.26% | 0.24% | 0.27% | 0.21% | 0.21% | 0.20% | |
| CAD | 0.21% | -0.01% | -0.09% | -0.27% | -0.19% | -0.07% | -0.12% | |
| AUD | 0.32% | 0.12% | 0.04% | -0.21% | 0.19% | 0.05% | 0.11% | |
| NZD | 0.27% | 0.08% | -0.02% | -0.21% | 0.07% | -0.05% | 0.07% | |
| CHF | 0.22% | 0.00% | -0.09% | -0.20% | 0.12% | -0.11% | -0.07% |
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.
