Forex News

US dollar dips as Fed rate hike expectations wane, CAD steadies

2023.11.23 11:14


© Reuters

The US dollar fell against the Canadian dollar today, touching near 1.3680, as market sentiment shifted on the likelihood of further Federal Reserve interest rate hikes. Analysts attribute the softer stance on the US dollar to a combination of factors, including recent economic indicators and market expectations.

The University of Michigan’s Consumer Sentiment Index released recently pointed to higher inflation expectations among consumers, which typically would support a stronger dollar due to the anticipation of more aggressive monetary policy. However, this has been counterbalanced by other economic reports suggesting a potential slowdown.

On Friday, revised perceptions of inflation were evident as US Treasury yields ticked up. Yet, despite this uptick, durable goods orders in the US saw a significant drop, while jobless claims fell to 209,000 just before Thanksgiving Day when markets were closed. The reduced number of jobless claims could be seen as a positive sign for the labor market; however, it did not seem to bolster the case for further rate hikes.

Adding to the complexity is the Canadian economic landscape. While the Canadian dollar found some support from these broader market movements, its gains were capped by falling oil prices. West Texas Intermediate (WTI) crude prices declined amidst uncertainties surrounding an OPEC+ meeting, which can have a substantial impact on resource-linked currencies like the Canadian dollar.

Investors are now turning their attention to upcoming economic data for further direction. Retail sales figures from Canada are awaited with interest, potentially affecting the strength of the CAD. Meanwhile, in the United States, post-Thanksgiving S&P Global PMI figures will be closely watched to gauge business activity levels and economic health.

As global markets adjust to these mixed signals, traders remain cautious. The interplay between commodity prices, such as oil, and shifting monetary policy expectations continues to create a complex trading environment for currency pairs like .

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Source link

Related Articles

Back to top button
bitcoin
Bitcoin (BTC) $ 97,979.25 0.85%
ethereum
Ethereum (ETH) $ 3,489.61 5.01%
tether
Tether (USDT) $ 1.00 0.22%
solana
Solana (SOL) $ 251.44 2.47%
bnb
BNB (BNB) $ 666.12 3.10%
xrp
XRP (XRP) $ 1.47 9.62%
dogecoin
Dogecoin (DOGE) $ 0.423217 3.07%
usd-coin
USDC (USDC) $ 1.00 0.16%
cardano
Cardano (ADA) $ 1.04 6.00%
staked-ether
Lido Staked Ether (STETH) $ 3,489.52 4.89%
avalanche-2
Avalanche (AVAX) $ 45.10 14.47%
tron
TRON (TRX) $ 0.210498 3.35%
the-open-network
Toncoin (TON) $ 6.22 4.42%
stellar
Stellar (XLM) $ 0.513774 2.03%
shiba-inu
Shiba Inu (SHIB) $ 0.000026 4.38%
wrapped-steth
Wrapped stETH (WSTETH) $ 4,132.37 4.83%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 97,646.16 0.43%
polkadot
Polkadot (DOT) $ 8.86 6.84%
chainlink
Chainlink (LINK) $ 18.75 13.59%
bitcoin-cash
Bitcoin Cash (BCH) $ 521.62 6.57%
weth
WETH (WETH) $ 3,489.87 5.01%
sui
Sui (SUI) $ 3.40 4.71%
pepe
Pepe (PEPE) $ 0.00002 2.97%
near
NEAR Protocol (NEAR) $ 6.81 10.56%
leo-token
LEO Token (LEO) $ 8.44 2.39%
litecoin
Litecoin (LTC) $ 97.61 3.96%
uniswap
Uniswap (UNI) $ 12.06 15.31%
aptos
Aptos (APT) $ 12.68 7.28%
wrapped-eeth
Wrapped eETH (WEETH) $ 3,673.93 4.96%
internet-computer
Internet Computer (ICP) $ 12.37 14.81%
hedera-hashgraph
Hedera (HBAR) $ 0.142763 0.24%
usds
USDS (USDS) $ 0.999227 0.66%
crypto-com-chain
Cronos (CRO) $ 0.189143 0.93%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.592212 10.87%
ethereum-classic
Ethereum Classic (ETC) $ 30.93 11.16%
render-token
Render (RENDER) $ 7.88 5.71%
kaspa
Kaspa (KAS) $ 0.157168 6.15%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.50 6.27%
bittensor
Bittensor (TAO) $ 526.18 6.64%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.09%
arbitrum
Arbitrum (ARB) $ 0.915394 11.63%
whitebit
WhiteBIT Coin (WBT) $ 24.38 0.34%
vechain
VeChain (VET) $ 0.042988 6.83%
dai
Dai (DAI) $ 1.00 0.24%
filecoin
Filecoin (FIL) $ 5.72 6.70%
bonk
Bonk (BONK) $ 0.000046 2.81%
cosmos
Cosmos Hub (ATOM) $ 8.67 1.76%
celestia
Celestia (TIA) $ 7.78 2.91%
blockstack
Stacks (STX) $ 2.24 14.88%
mantra-dao
MANTRA (OM) $ 3.66 1.27%