USD/CAD catches aggressive bids on Monday amid a goodish pickup in the USD demand.
Bets for a slower Fed rate-cutting cycle and rebounding US bond yields underpin the USD.
Rising Oil prices do little to benefit the Loonie or hinder the pair’s intraday positive move.
The USD/CAD pair regains strong positive traction at the start of a new week and climbs to the 1.4040 area during the Asian session, snapping a three-day losing streak amid a goodish pickup in the US Dollar (USD) demand.
US President-elect Donald Trump's tariff plans could push consumer prices higher and set the stage for the Federal Reserve (Fed) to stop cutting rates. This, in turn, triggers a fresh leg up in the US Treasury bond yields and assists the USD in staging a goodish recovery from a nearly three-week low touched on Friday, which, in turn, is seen as a key factor acting as a tailwind for the USD/CAD pair.
In fact, Trump threatened a 100% tariff on the so-called 'BRICS' nations – Brazil, Russia, India, China, and South Africa. Adding to this, Trump's pledged big tariffs against America’s three biggest trading partners – Mexico, Canada and China – overshadows a modest uptick in Crude Oil prices. This, in turn, does little to lend any support to the commodity-linked Loonie or hinder the USD/CAD pair's move up.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
Hot
No comment on record. Start new comment.