Canadian Dollar loses traction to near 1.3500 as Fed Chair announcement looms
The post Canadian Dollar loses traction to near 1.3500 as Fed Chair announcement looms appeared on BitcoinEthereumNews.com.
The USD/CAD pair recovers some lost ground to near 1.3520 during the Asian trading hours on Friday. The US Dollar (USD) strengthens against the Canadian Dollar (CAD) ahead of US President Donald Trump’s Federal Reserve (Fed) chair announcement. The US Producer Price Index (PPI) report will be released later on Friday. Trump on Thursday threatened to impose a 50% tariff on all aircraft sold from Canada into the United States (US), accusing Canada of unfairly blocking certification of Gulfstream business jets. Renewed trade tensions and uncertainty could weigh on the Loonie and act as a tailwind for the pair in the near term. Trump said late Thursday that he will announce his choice to replace Jerome Powell as the chair of the Federal Reserve (Fed) on Friday morning, per Bloomberg. Former Fed Governor Kevin Warsh is increasingly seen as the frontrunner following a reported meeting with Trump at the White House. Traders will closely monitor the developments surrounding potential implications for Fed independence and the interest rate outlook. The Wall Street Journal reported on Thursday that Trump and Senate Democrats struck a deal that could avert a government shutdown and buy more time to negotiate restrictions on the administration’s immigration crackdown. Market concerns eased after this headline, which lifted the Greenback against the CAD. Nonetheless, it is unclear how quickly the House can and will process those funding bills after the Senate passes them. The shutdown deadline is midnight on Friday. The Greenback’s rebound may prove short-lived if market concerns resume, particularly over the Fed’s independence and the risk of a US government shutdown, which could continue to weigh on the USD. Canadian Dollar FAQs The key factors driving the Canadian Dollar (CAD) are the level of interest rates set by the Bank of Canada (BoC), the price of Oil, Canada’s…
Filed under: News - @ January 30, 2026 3:21 am