The Canadian dollar is weakened by the threats of the new definitions from Trump

• Weak Canadian dollar amid fears of Trump’s definitions, and uncertainty about reducing interest rates from Canada Bank
• The US dollar pair/Canadian dollar USD/CAD remains fixed above 1.4200 with the rise of the US dollar due to aversion to risk.
• High inflation in Canada may delay the facilitation of Canada, which adds uncertainty.
• Traders are awaiting the minutes of the Federal Open Market Committee (FOMC) to find out the Federal Reserve’s position on the timing of interest rates.

The Canadian dollar (CAD) fell against the US dollar on Wednesday, where the USD/CAD pair remained floating above 1.4200 amid renewable concerns about the threats of definitions from US President Donald Trump. The lack of Canadian data is left in a state of loss towards the economic agenda in the United States, especially housing data for January.

The Canadian economic agenda was empty, however, the latest round of inflation data has seen an increase, indicating that the Bank of Canada (BOC) may rethink twice before reducing the policy. In the United States, the starting housing data in January was disappointing, although construction permits showed that construction continued to rise, despite a weak pace.

Today, the US economic agenda will also include the issuance of the latest FBI monetary policy. On January 27-28, the Federal Reserve decided to maintain constant interest rates, stopping the facilitation cycle with high inflation. Jerome Powell, the head of the Federal Reserve, should be said a little tightened, saying they are not in a hurry to reduce interest rates.

Since then, most federal reserve officials have become a little careful, adopting waiting and anticipation on inflation.

Daily market engines: The Canadian dollar is fighting to rise amid mixed American data

• The beginnings of housing in the United States decreased sharply by 9.6% in January, declining from 1.515 million to 1.366 million, as bad weather conditions affected construction activity.
• On the other hand, construction permits in the United States increased slightly, an increase of 0.1% from 1.482 million to 1.483 million during the same period, indicating flexibility in future construction plans.
• The differences in interest rates between Canada and the United States continued to pressure the Canadian dollar, which remained under pressure for the third day in a row. The USD/CAD pair reached the highest weekly level at 1.4244.
• However, a reflection is on the horizon as Canada Bank may retain interest rates after the release of the consumer price index data for January. In this case, the USD/CAD pair may aim to decrease as the Canadian dollar rises against the US dollar.

USD/CAD price forecasts: Canadian dollar is ready for more height, although losses are recorded

The bullish trend of the USD/CAD husband lost his strength after the husband reached its climax near 1.4800. Since then, the sellers have seized the prices below the simple moving average for 50 days (SMA) at 1.4338 and breaking the minimum daily level on January 20 at 1.4260, which is a crucial level for buyers. More declining lies in the future if the bears pay immediate prices below the simple moving average for 100 days at 1.4111.

Otherwise, if buyers raise a USD/CAD pair above 1.4300, they must restore the simple moving average for 50 days to stay optimistic about the high prices.