USD/CAD inches lower to near 1.4350 as Oil prices continue to rise
The post USD/CAD inches lower to near 1.4350 as Oil prices continue to rise appeared on BitcoinEthereumNews.com.
USD/CAD loses ground as a result of a downward correction in the US Dollar. The US Dollar Index retreats from its multi-year high of 108.58, reached on Tuesday. The commodity-linked CAD receives support from the improving WTI prices. USD/CAD halts its two days of gains, trading around 1.4370 during the Asian hours on Thursday. This downside of the pair could be attributed to the downward correction in the US Dollar. The US Dollar Index (DXY), which tracks the value of the US Dollar against six major currencies, trades around 108.30 after pulling back from its multi-year high of 108.58, reached on Tuesday. The Federal Reserve may adopt a more cautious outlook regarding further rate cuts in 2025, signaling a shift in its monetary policy stance. This change reflects uncertainties surrounding potential policy adjustments in light of the anticipated economic strategies of the incoming Trump administration. Additionally, the USD/CAD pair faces challenges as the Canadian Dollar (CAD) receives support from the improving crude Oil prices, given that Canada is the largest Oil exporter to the United States (US). West Texas Intermediate (WTI) Oil price extends its gains for the fifth successive day, trading around $71.70 per barrel at the time of writing. Oil prices start the New Year 2025 by gaining ground amid investors returning from holidays cautiously eyed a recovery in China’s economy and fuel demand following a pledge by President Xi Jinping to promote growth. On Tuesday, Xi stated that China would implement more proactive policies to promote growth in 2025, according to Reuters. Looking ahead, the US weekly Initial Jobless Claims and S&P Global Manufacturing PMI for December from both economies will be released later in the North American session. Canadian Dollar FAQs The key factors driving the Canadian Dollar (CAD) are the level of interest rates set…
Filed under: News - @ January 2, 2025 6:23 am