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USD/CAD
USD/CAD Price Forecast USD/CAD edges lower to near 1.4040, outlook remains bullish. The Fed is expected to cut interest rates two times more this year. Fed officials signaled cracks in the US labor market. The USD/CAD pair ticks down to near 1.4040 on Wednesday. The Loonie pair is marginally down during the European trading session even as the US Dollar has declined, suggesting that the Canadian Dollar (CAD) is also weak. During the press time, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades 0.2% lower to near 98.80. The US Dollar faces selling pressure as comments from Federal Reserve (Fed) officials, including Chair Jerome Powell, have signaled cracks in the labor market. On Tuesday, Fed’s Powell warned of softening job demand, with economic growth remaining somewhat higher than projected and inflation well above the desired 2% target. “Economic activity data are surprising to the upside, creating some tension with the labour market data,” Powell said. Deteriorating US labor market conditions have also bolstered wagers for more interest rate cuts by the Fed. According to the CME FedWatch tool, traders see a 94.6% that the Fed will reduce interest rates by 50 basis points (bps) to 3.50%-3.75% in the remaining year. Meanwhile, the Canadian Dollar trades lower ahead of Canada’s Manufacturing Sales data for August, which will be published at 12:30 GMT.
