• USD/CAD is missing a forceful end -up direction on Monday among the combination of divergent factors.
• Fed rates reduce plants and concerns about the slowed economy, they still burden the green place.
• The muffled oil prices undermine Loon and support the pair among the mood of the risk.

The USD/CAD pair tries to operate a modest reflection from a monthly low touch last Wednesday and starts a fresh week on a subdued note among mixed tips. However, spot prices are exceeding the 100-day straight average movable (SMA) and currently trade around 1.4300, almost unchanged for the whole day.

The deviation of the American dollar (USD) remains indefinite on the third day on Monday, because the uncertainty about the aggressive trade policy of the US President Donald Trump still drives concerns about the USA’s economic slowdown based on the tariff. This remains the support of the growing market acceptance that the Federal Reserve (FED) could resume its rate cycle and keep the USD bulls on the defensive, which in turn acts as a wind for the USD/CAD couple.

Meanwhile, USD bulls largely reject the signs of growing inflation in the USA. In fact, the American price rate of personal consumption (PCE) showed on Friday that the basic indicator, which excludes unstable prices of food and energy, increased in February by 0.4%, which means the highest monthly raise from January 2024 and raising the annual rate to 2.8%. In addition, 12-month expectations for inflation of the Michigan University have increased to the highest level from almost 2-1/2 years in March.

However, the common risk environment, ahead of the US President Donald Trump’s mutual tariffs, which will be announced on Wednesday, helps limit the disadvantage for a unthreatening bonfire. Last week, Trump shook the markets, applying a 25% tariff to all non -American cars and featherlight trucks. By adding to this the weekend report, he said that Trump would consider higher tariffs in relation to a wider range of countries that would come into force from April 2.

In addition, hope for a Ukrainian peace agreement keep the oil prices below the many weeks of touch last Wednesday, which additionally undermines Loon connected by the goods and provides support for the USD/CAD pair. This, in turn, justifies some caution before thwarting the recently established decline in currency pair from around the mid -1,4500 or a monthly swing affected on March 4.