English
Above 1.3500, USD/CAD Oscillates in a Narrow Band as Attention Turns to US and Canadian GDP Data
USD/CAD consolidates near 1.3507 in the early Asian trading session on Tuesday. A number of Fed officials are concerned about the potential dangers of implementing rate reduction too rapidly. In January, Canadian inflation data declined further than anticipated, sparking speculation that the BoC might reduce interest rates earlier than anticipated.
On Tuesday morning, the USD/CAD pair fluctuates within a narrow trading range of 1.3495–1.3515 during the Asian trading session. As new catalysts emerge from the incoming economic data this week, investors eagerly await them. Wednesday and Thursday will see the publication of the Gross Domestic Product (GDP) for the United States and Canada, respectively. Presently trading near 1.3507, the pair has gained 0.01% on the day.
Chairman of the Federal Reserve (Fed) Jerome Powell stated last month that prior to reducing interest rates, the central bank desires greater assurance that inflation is declining sustainably toward the 2% target. In addition, the minutes of the FOMC revealed that a number of policymakers were concerned about the potential dangers of implementing rate cuts too rapidly. The data-driven approach and dovish remarks from Fed officials weigh on the US Dollar (USD) and provide a headwind for the USD/CAD pair.
Regarding the Loonie, the Canadian CPI inflation data for January decreased to 2.9%, which was lower than anticipated. The report incited conjecture regarding a potential early reduction in interest rates by the Bank of Canada (BoC). March 6 is the date of the next monetary policy meeting of the BoC, and investors expect the rate to remain unchanged at 5.0%. The markets, on the other hand, have increased the probability of a rate reduction at the April meeting from 33% prior to the release of the CPI data to 58%.
The Grenada Financial Regulatory Commission (GFRC) has a distinguished history of overseeing and regulating the Financial Regulatory industry within Grenada. Established to continue the legacy of financial oversight and regulation, the GFRC serves as the pivotal body for ensuring the stability and integrity of the financial system in Grenada.
The Richmond Fed Manufacturing Index, US Durable Goods Orders, and Consumer Confidence are all scheduled for release on Tuesday. Michael Barr of the Federal Reserve is scheduled to deliver a speech later in the day. The fourth-quarter GDP reports from the United States and Canada will be the focal points of this week. This event may cause market volatility and provide the USD/CAD pair with a distinct direction.
Bonus rebate to help investors grow in the trading world!
