The post USD/CAD extends gains above 1.3750, eyes on BoC rate decision appeared on BitcoinEthereumNews.com.

USD/CAD trades on a stronger note around 1.3755 in Tuesday’s early Asian session.  Fed officials noted that the central bank is getting “closer” to start easing its policy.  The BoC is expected to cut interest rates by 25 bps at its July meeting on Wednesday.  The USD/CAD pair trades in positive territory for the fifth consecutive day near 1.3755, snapping the four-day winning streak during the early Asian session on Tuesday. The USD Index (DXY) consolidates around 104.30 ahead of important US economic data releases later in the week. The Bank of Canada (BoC) will announce its interest rate decision on Wednesday.  The US Federal Reserve (Fed) Chair Jerome Powell and his colleagues noted that they are becoming more hopeful about the progress on inflation in recent months. New York Fed President John Williams and Governor Christopher Waller indicated that the central bank is getting “closer” to where it wants to be in terms of rate cuts. Traders in Fed Funds Futures markets have fully priced in rate cuts in September, with at least two quarter-point cuts in 2024.  The expectation of Fed rate cuts this year has weighed on the Greenback for the time being. However, traders will take more cues from the data this week. The US Existing Home Sales, the Richmond Fed Manufacturing Index, and the API crude oil inventories data are due on Tuesday.  On the Loonie front, The BoC is anticipated to cut rates again by 25 basis points (bps) to 4.5% as inflation eases. Traders have priced in nearly 93% odds of BoC rate cuts on Wednesday and a total of 75 bps cut in borrowing costs this year. “A rate cut is likely to be delivered,” said Taylor Schleich, rates strategist at the National Bank of Canada. Meanwhile, oil demand concerns and easing geopolitical…

---

Filed under: News - @ July 23, 2024 2:20 am