- USD/CAD gains traction to about 1.4340 in Wednesday’s slow American session.
- Lower oil prices and renovated tariff threats in the USA exert some pressure on the Canadian dollar.
- FED officials need a clear signal before deciding on subsequent moves.
The USD/CAD pair extends the rally to almost 1.4340 during the slow American session on Wednesday. The decrease in oil prices still charges the Canadian dollar (CAD) related to the goods. Initial claims on the occasion of unemployment in the US are to be later on Thursday, along with estimating the gross domestic product (GDP) in the fourth quarter (Q4).
Oil oil prices fall to a two -month low level among increasing problems when the prospects of a peace agreement between Russia and Ukraine are improved. This, in turn, undermines Loon associated with goods, because Canada is the largest oil exporter to the United States (USA), and lower oil prices usually have a negative impact on the value of CAD.
In addition, the renovated tariff threats in the US weigh CAD and act as a wind in USD/CAD. US President Donald Trump confirmed that plans to impose 25% tariffs on Canadian goods and 10% to Canadian energy export until April 2, which reversing earlier delays related to Canadian limit safety means. “This is another month, which is obviously good news for Canada, but tariff uncertainty is a real leaving the Canadian economy,” said Adam Button, the main currency analyst at Forexlive.
American dollar (USD) Zbica from 11-weekly lowest when traders assess the power of the economy and tariff perspectives. President Richmond Federal Reserve (FED) Tom Barkin said on Tuesday that he would follow the expectation approach and see the Fed interest rate policy until it is clear that inflation will return to the goal of 2% of the central bank, taking into account the current uncertainty related to the economy.
Fed officials are to speak later on the same day, including Michelle Bowman, Beth Hammack and Patrick Harker. Jastrzębia’s commentators’ commentary may soon raise USD in relation to the Canadian dollar (CAD).
