AI Trader+

Canadian Dollar Faces Trading Pressures Amid Crude Price Shifts

Canadian Dollar Faces Trading Pressures Amid Crude Price Shifts

Canadian Dollar's Trading Day

The Canadian Dollar began the day facing challenges in comparison to its US counterpart, largely due to how falling crude prices impacted the loonie, a currency intertwined with commodities. Over the course of the day's fluctuating trading sessions, the Canadian currency encountered opposition against most major currencies. However, it successfully stood its ground when matched up against the US dollar up until the conclusion of trading hours.

Investing Pro Subscriptions

Subscribers to Investing Pro are given real-time access to the latest breaking news, updates from analysts, as well as top-rated buy ProPick recommendations. Avail an additional 10% discount with the coupon code: Canada2024. Furthermore, take full advantage of the New Year's sale offering up to 60% off.

Dynamics of the US Dollar

Continuing its trend of softness, the US dollar flagged across all main currencies. This is largely due to the US Treasury yields seeing a downturn and investors recalibrating their hopes for interest rate decreases by the US Federal Reserve, especially ahead of upcoming crucial CPI data.

Market Predictions for Fed Interest Rate

Current market predictions envision five Federal Reserve rate reductions in the year 2024. Despite a freeze on reductions expected for January, analysts predict cuts to take place in March and May.

USDCAD Outlook

Scotiabank's analyst team comments on the USDCAD pair's future, pointing out, "The weekly graph depicts the formation of a bullish 'hammer' candle during the start of the year. Despite the substantial swings in USD intra-day trade on Friday last week, the USD still managed a strong close, accentuating its bullish trading pattern and reinforcing the prospects for further USD corrections in coming weeks, potentially towards 1.34/1.35. An upward push past the resistance range of 1.3390/1.3400 will enhance bullish momentum in the near term."

AI Trader+