- USD/CAD consolidates around 1.3575, with investors awaiting the Fed’s monetary policy.
- The Fed is expected to keep interest rates steady on Wednesday.
- US Trump and Canada’s Carney aim to reach a trade deal within 30 days.
The USD/CAD pair wobbles inside Monday’s trading range around 1.3575 during the early European trading session on Tuesday. The Loonie pair trades sideways as investors await the Federal Reserve’s (Fed) monetary policy announcement on Wednesday.
Investors expect the Fed to leave interest rates steady in the current range of 4.25%-4.50% as officials have stated that monetary policy adjustments are inappropriate until they get clarity on how much new economic policies by Washington will impact the inflation and the economic outlook.
At the press time, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades flat around 98.15.
Meanwhile, the Canadian Dollar (CAD) underperforms its peers on Tuesday even though Canadian Prime Minister Mark Carney and United States (US) President Donald Trump agreed to reach a trade deal within 30 days, Reuters reported.
Canadian Dollar PRICE Today
The table below shows the percentage change of Canadian Dollar (CAD) against listed major currencies today. Canadian Dollar was the weakest against the Australian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.06% | 0.08% | -0.06% | 0.06% | -0.11% | -0.13% | -0.05% | |
| EUR | -0.06% | -0.00% | -0.10% | -0.00% | -0.14% | -0.10% | -0.13% | |
| GBP | -0.08% | 0.00% | -0.14% | -0.01% | -0.14% | -0.14% | -0.12% | |
| JPY | 0.06% | 0.10% | 0.14% | 0.11% | -0.07% | -0.07% | -0.02% | |
| CAD | -0.06% | 0.00% | 0.00% | -0.11% | -0.24% | -0.09% | -0.12% | |
| AUD | 0.11% | 0.14% | 0.14% | 0.07% | 0.24% | 0.03% | 0.02% | |
| NZD | 0.13% | 0.10% | 0.14% | 0.07% | 0.09% | -0.03% | -0.01% | |
| CHF | 0.05% | 0.13% | 0.12% | 0.02% | 0.12% | -0.02% | 0.01% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Canadian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent CAD (base)/USD (quote).
Theoretically, the scenario is favorable for the Loonie as the Canadian economy relies heavily on its exports to the US.
USD/CAD trades close to its eight-month low, which is around 1.3540. The overall trend of the pair is bearish as all short-to-long Exponential Moving Averages (EMAs) are sloping downwards.
The 14-day Relative Strength Index (RSI) oscillates inside the 20.00-40.00 range, suggesting that a bearish momentum is intact.
The asset could slide towards the psychological level of 1.3500 and the September 25 low of 1.3420 if it breaks below Monday’s low of 1.3540.
On the contrary, a recovery move above the May 29 high of 1.3820 would turn the near-term trend to bullish and open the door towards the May 21 high of 1.3920, followed by the My 15 high of 1.4000.
USD/CAD daily chart
