USD/CAD Moves Higher Below 1.3700 as Traders Wait for FOMC Minutes
The USD/CAD pair is trading with a small upward move, staying just below the 1.3700 level. The US Dollar (USD) is holding steady as traders wait for the FOMC meeting minutes, which will give more information about the Federal Reserve’s plans for interest rates.
Oil prices have dropped recently, which puts pressure on the Canadian Dollar (CAD). This is because Canada is a major oil exporter, and lower oil prices often hurt the CAD.
The Bank of Canada (BoC) recently cut interest rates, but now traders think it might go slow with more cuts. On the other hand, the US job market is still strong, which means the Fed might not cut rates anytime soon. That’s helping the USD stay strong.
Right now, the USD/CAD is stuck below 1.3700. If it crosses above that level, it could rise more. But the market is waiting for the FOMC minutes to know what will happen next.
Impact:
USD/CAD might rise if the Fed minutes show no signs of early rate cuts. Falling oil prices could continue to pressure the Canadian Dollar this week.