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USD/CAD trades flat near 1.3485 in Thursday’s early Asian session.  Dovish Fed might continue to undermine the US dollar in the near term.  BoC’s Macklem said it’s reasonable to expect more rate cuts.  The USD/CAD pair flatlines around 1.3485 after retracing to 1.3420, the lowest level since March 8, during the early Asian session on Thursday. Investors ponder the Federal Reserve’s (Fed) path of rate cuts and digest US housing market data. The Fed’s Chair Jerome Powell speech will take center stage later in the day.  Traders await fresh catalysts after last week’s jumbo rate cut by 50 basis points (bps) by the US central bank. Fed Governor Adriana Kugler said on Wednesday that she “strongly supported” the central bank’s decision last week, adding that it would be appropriate to cut further rates if inflation continues to ease as expected. The dovish comments from the Fed officials are likely to exert some selling pressure on the Greenback in the near term.  Sales of new homes in the US fell 4.7% MoM to 716,000 in August from a revised 751,000 in July, the Commerce Department reported Wednesday. This figure came in better than the expectations. Later on Thursday, the Fed’s Susan Collins, Adriana Kugler, Michelle Bowman, John Williams, Michael Barr, Neel Kashkari and Jerome Powell are scheduled to speak. Traders will take cues from the remarks as they might offer some hints about the US interest rate outlook. Also, the US weekly Initial Jobless Claims, Durable Goods Orders and final US Gross Domestic Product (GDP) Annualized for the second quarter (Q2) will be published.  The Bank of Canada (BoC) Governor Tiff Macklem said on Tuesday that the central bank has made in bringing inflation back down to the 2% target, so it is reasonable to expect more rate cuts. The BoC’s next interest rate decision…

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Filed under: News - @ September 25, 2024 11:17 pm