- The US dollar/Canadian dollar’s pair of 1,4200 with a temporary rise in the US dollar.
- The US dollar expectations are unconfirmed due to the multiple opposite winds.
- Investors are waiting for the Canadian consumer price index data, which will affect the monetary policy expectations of Canada.
The US dollar/Canadian dollar pair USD/CAD rose close to 1.4190 in the American session on Monday after being bounced from his lowest level in two months at 1.4150, which he recorded on Friday. The pair rises with the US dollar rising (USD), as the US dollar index (DXY) stands at its lowest level in two months at 106.60. However, the US dollar expectations are still unconfirmed as its attractiveness has diminished as a safe haven, as investors believe that the agenda of the customs tariffs of US President Donald Trump is less fearful than he believed.
On Thursday, Donald Trump did not reveal a detailed mutual definition plan and asked his team to work on. However, the uproar from his tweet on Truth Social indicated that he is ready for the plan and will impose it as soon as possible.
“Three wonderful weeks, perhaps the best ever, but today is the most important: mutual customs tariffs !!! Make America great again !!!” Trump said in early trading hours in North America on Thursday.
In terms of economic data, weak US retail sales data also affected negatively on the US dollar. Retail sales data, a main measure of consumer spending, decreased, at a faster rate of 0.9 % faster in January.
Meanwhile, the Canadian dollar (CAD) is expected to move sideways as investors are waiting for the Canadian Consumer Prices Index data (CPI) for January, which will be issued on Tuesday. It is estimated that the main consumer price index on a monthly basis has grown 0.1 % after its shrinkage by 0.4 % in December. Inflation data will affect market speculation about whether the BOC Bank will reduce interest rates again at the Policy meeting in March.
US dollar FAQs
2025-02-17 13:41:54