- USD/CAD is expected to consolidate near 1.3400 as investors await Canada’s inflation release for fresh cues.
- Federal Reserve might look for a rate hike by mere 25 bps led by a slowdown in December’s inflation report.
- The Bank of Canada will continue to hike interest rates despite a likely ease in inflationary pressures.
- USD/CAD is broadly declining towards the horizontal support placed at 1.3224.
USD/CAD has rebounded to near the round-level resistance of 1.3400 in the early Asian session. The Loonie asset is likely to remain sideways as investors are shifting their focus toward the release of Canada’s inflation, which is scheduled for Tuesday. Till then, the major will dance to the tunes of the market sentiment.
S&P500 futures are displaying a marginal sell-off in early Asia, portraying a short-term caution in the overall upbeat market mood. The return on US Treasury bonds scaled to 3.50%, surprisingly in the risk-appetite market theme. This also provided a cushion to the US Dollar Index (DXY) from any further weakness below 101.76.
Support authors and subscribe to content
This is premium stuff. Subscribe to read the entire article.