USD/CAD depreciates to near 1.3650 due to dovish sentiment surrounding the Fed
The post USD/CAD depreciates to near 1.3650 due to dovish sentiment surrounding the Fed appeared on BitcoinEthereumNews.com.
USD/CAD depreciates as the Fed is highly expected to reduce rates in September. Fed Governor Christopher Waller stated that the US central bank is ‘getting closer’ to a rate cut. Lower WTI prices limit the upside of the commodity-linked Canadian Dollar. USD/CAD retraces its recent gains from the previous session, trading around 1.3670 during the European session on Thursday. This downside is attributed to growing expectations of the Federal Reserve (Fed) reducing interest rates in September. On Wednesday, Fed Governor Christopher Waller said that the US central bank is ‘getting closer’ to an interest rate cut. Meanwhile, Richmond Fed President Thomas Barkin stated that easing in inflation had begun to broaden and he would like to see it continue,” per Reuters. According to CME Group’s FedWatch Tool, markets now indicate a 93.5% probability of a 25-basis point rate cut at the September Fed meeting, up from 69.7% a week earlier. However, the decline in crude Oil prices limits the upside of the commodity-linked Canadian Dollar (CAD), given the fact that Canada is the biggest Oil exporter to the United States (US). West Texas Intermediate (WTI) Oil price trades around $81.30 per barrel at the time of writing. Despite the dovish sentiment surrounding the Fed regarding its policy stance, the US Dollar (USD) rebounds due to increased risk aversion. This might have put pressure on Oil prices. However, WTI price gained ground in Thursday’s Asian session, driven by a bigger-than-expected decline in crude stocks in the United States, the world’s largest oil consumer. The US Energy Information Administration (EIA) released the US Crude Oil Stocks Change on Wednesday, reporting a decrease of 4.87 million barrels for the week ending July 12. This decline exceeds the expected drop of 0.80 million barrels and the previous decrease of 3.443 million barrels. The softer Canadian…
Filed under: News - @ July 18, 2024 1:22 pm