USD/CAD Declines Amid a Flurry of Market News
The Canadian dollar strengthened against the U.S. dollar today, pushing USD/CAD down to 1.39750 ? a level that acted as resistance in early October but has since turned into support.
The pair?s fluctuations come amid a busy news backdrop. On Friday:
→ President Trump announced the suspension of trade talks with Canada, reportedly due to his dissatisfaction with Canadian advertising campaigns using Ronald Reagan?s image to criticise tariffs.
→ The CPI report came in weaker than expected. According to Forex Factory, U.S. annual inflation stood at 3.0%, compared with the 3.1% forecast by analysts.
This week could bring heightened volatility as markets await two key rate decisions on Wednesday:
→ At 16:45 GMT+3, the Bank of Canada is expected to cut its policy rate from 2.50% to 2.25%;
→ At 21:00 GMT+3, the Federal Reserve is forecast to lower the Federal Funds Rate from 4.25% to 4.0%.
Both announcements will be accompanied by policy statements that could significantly influence USD/CAD price action.
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