US–China tariff truce boosts sentiment; CPI, Fed outlook in focus
The post US–China tariff truce boosts sentiment; CPI, Fed outlook in focus appeared on BitcoinEthereumNews.com.
USD/CAD trades near 1.3945, extending Friday’s rally and marking its fourth consecutive session of gains. US–China trade truce lifts global risk sentiment, supporting the Greenback. Markets await Tuesday’s US CPI data, Fed comments, and broader macro updates. The US Dollar (USD) is trading higher against the Canadian Dollar (CAD) at the start of the week, supported by renewed risk appetite following a US–China trade agreement, diverging interest rate expectations, and anticipation of major US economic data. At the time of writing, USD/CAD is trading around 1.3945, sustaining bullish momentum from Friday. US–China tariff pause lifts sentiment and supports the US Dollar Risk sentiment improved after US and Chinese officials agreed to a 90-day pause on new tariffs, easing pressure on global supply chains and tempering fears of a near-term economic slowdown. While Canada is not directly involved in the agreement, the development has reinforced global demand expectations and strengthened the US Dollar by boosting market confidence. The trade truce has also bolstered expectations that the Federal Reserve (Fed) will maintain its restrictive policy stance for longer, particularly as inflation remains above target and labor market resilience persists. Key US data and Fed speakers to guide USD/CAD direction This week presents a dense macroeconomic calendar that could shape USD/CAD direction. On Tuesday, all eyes will be on the April US Consumer Price Index (CPI) report. Markets expect a 0.3% MoM increase in both the headline and core CPI, with YoY figures projected to remain steady at 2.4% and 2.8%, respectively. While CPI is a critical input for Fed policy, it is part of a broader narrative. The outlook will also be shaped by comments from several Fed officials, most notably Chair Jerome Powell, who is scheduled to speak on Thursday. His remarks will follow earlier commentary from Governors Waller, Jefferson, and…
Filed under: News - @ May 12, 2025 7:26 pm