USD/CAD climbs toward 1.4350 as the US Dollar strengthens, Oil prices weaken

• USD/CAD appreciates as the DXY advances toward 106.50, driven by rising US yields.
• Richmond Fed President Barkin emphasized the need for a cautious “wait and see” approach amid persistent policy uncertainties.
• The commodity-linked CAD faces headwinds due to falling crude Oil prices.

USD/CAD continues its upward momentum for the fourth straight session, trading around 1.4330 during Asian hours on Wednesday. The US Dollar (USD) strengthens amid rising US Treasury yields. The US Dollar Index (DXY), which tracks the USD against six major currencies, climbs near 106.50, with 2-year and 10-year US Treasury yields rising to 4.13% and 4.33%, respectively, at the time of writing.

On Tuesday, Thomas Barkin, President of the Federal Reserve Bank of Richmond, forecasted another decline in Personal Consumption Expenditure (PCE) inflation later this week, noting the Fed’s significant progress in managing inflation. Despite his generally positive outlook, Barkin stressed the importance of a cautious “wait and see” approach due to ongoing policy uncertainties.