USD/CAD bounces back as Canadian Dollar weakens, US elections take center stage

By TradeRadius | Mon, 04 Nov 2024 10:58:23 UTC

img for post
  • USD/CAD rebounds from 1.3900 as the Canadian Dollar weakens on expectations that the BoC will deliver another 50-bps interest rate cut.
  • The likelihood of tough competition between Kamala Harris and Donald Trump for presidential elections has weighed on the US Dollar.
  • The Fed is expected to cut interest rates by 25 bps on Thursday.

The USD/CAD pair recovers half of its intraday losses after discovering significant buying interest around the key support of 1.3900. The Loonie asset bounces back despite the US Dollar (USD) remaining vulnerable against its major peers, suggesting sheer weakness in the Canadian Dollar (CAD).

The CAD remains on the backfoot as the Bank of Canada (BoC) is expected to cut interest rates further in the last monetary policy meeting of the year in December. BoC Governor Tiff Macklem opened doors for another 50 basis points (bps) interest rate reduction in December.

“We’ve demonstrated we’re prepared to do a 50-basis-points cut if we think that’s appropriate. And if we think it’s appropriate to do it again, we’ll do it again,” Macklem told to Senate Committee on Wednesday. Macklem emphasized the need to lower interest rates unless he sees surprises from economic developments. The BoC also reduced its interest rates by 50 bps to 3.75% in its policy meeting in October.

For more interest rate guidance, investors will pay close attention to BoC's Summary of Deliberations and the minutes of the policy meeting of October, which will be published on Tuesday.

Meanwhile, the US Dollar faces intense selling pressure as recent United States (US) national polls have shown that there would be fierce competition between Democratic candidate Kamala Harris and former President Donald Trump for presidential elections on Tuesday. The US Dollar Index (DXY), which gauges Greenback’s value against six major currencies, tumbles to near 103.70.

This week, investors will also focus on the Federal Reserve (Fed) policy meeting, which is scheduled on Thursday. The Fed is expected to reduce interest rates by 25 bps to 4.50%-4.75%, according to the CME FedWatch tool.

 

 

Share

Partners News

The case for human-centered AI

Over the past two years, generative AI (gen AI) has been a rapidly evolving trend that has touched the lives of many around the globe. Which is why the design of these formidable systems must include experts from diverse backgrounds, says James Landay, a professor of computer science at...

By TradeRadius | 12 Minutes Ago

> >

Domestic Material Consumption extracted from the environment grew 1.7%

Domestic Material Consumption increased by 1.7% in 2023, in an economic context marked by real GDP growth of 2.5%. In the last decade, as a result of a 2.5% increase in Domestic Material Consumption and a 20.4% growth in GDP in volume, productivity in the use of materials increased by 16.8%,...

By TradeRadius | 34 Minutes Ago

> >

Bank appraisals on housing increased 19 euros to 1,740 Euros per square meter

The median value of bank appraisals on housing reached €1,740 per square meter in November 2024, €19 more than in the previous month (an increase of 1.1%). On a year-on-year basis, the rate of change stood at 13.7% (12.0% in October). It should be noted that the number of bank appraisals inc...

By TradeRadius | 34 Minutes Ago

> >

Christmas getaway: Tips to avoid disruption

Nearly 14 million drivers are expected to hit the road during the last weekend before Christmas, marking a new record, according to the RAC motoring group. Disruption to some rail services is also expected due to engineering works, adding to congestion on the roads, while windy weather has led...

By TradeRadius | 56 Minutes Ago

> >

Sweden criticises China for refusing full access to vessel suspected of Baltic Sea cable sabotage

Swedish public prosecutor denied permission to board Yi Peng 3 despite open investigation

By TradeRadius | 1 Hours Ago

> >

WTI Crude Oil Weekly Forecast: Range Steady as Holiday Season Trading Begins - 22 December 2024

By Robert Petrucci Created on December 22, 2024 WTI Crude Oil went into the weekend near the 69.500 USD mark, this as a two week stretch of holiday trading is looking speculators in the eyes as they decide if they want to participate.

By TradeRadius | 2 Hours Ago

> >

10 Bold Predictions That Could Define Financial Markets in 2025

Below are the top 10 events and surprises that could impact financial markets and the global economy in the New Year. These are not forecasts, but potential macro-economic, geopolitical or market events that are not anticipated by the financial markets. We also try to assess the probability of...

By TradeRadius | 3 Hours Ago

> >

Investing in mutual funds and ETFs? Know 5 differences between NAV and iNAV

Dec 22, 2024 When investing in mutual funds, investors often come across two key terms: NAV (Net Asset Value) and iNAV (Indicative Net Asset Value). Understanding these metrics enables investors to make informed decisions, align their investments with market trends, and optimize returns.

By TradeRadius | 6 Hours Ago

> >

One ELSS mutual fund will open for subscription this week

Dec 22, 2024, 10:30:24 AM IST 1/6 Bajaj Finserv Mutual Fund will launch Bajaj Finserv ELSS Tax Saver Fund, an open ended equity linked saving scheme with a statutory lock in of 3 years and tax benefit.

By TradeRadius | 6 Hours Ago

> >

Equity mutual funds lost up to 6% last week. Here’s the breakup

Dec 22, 2024, 10:22:48 AM IST 1/9 Equity mutual funds have offered negative returns in the last week upto 6%. Sectoral and thematic funds dominated the list of negative performers. Here are 10 worst performers. (Source: ACE MF)

By TradeRadius | 6 Hours Ago

> >