Home›Forex›Major Pairs›USD/CAD slips toward 1.4113 as oil falls and Fed decis…

USD/CAD slips toward 1.4113 as oil falls and Fed decision nears

WTI crude hit a fresh weekly low near $79.40, weighing on the Canadian dollar ahead of the Fed meeting, where traders see a 62% chance of unchanged rates.

Reported · Written up by our desk · Major Pairs

FXStreet reports that the USD/CAD pair edged lower to around 1.4113 in European trading on Tuesday, with the Canadian dollar (CAD) outperforming other major currencies.

The article links the move to a further decline in oil prices, noting that WTI fell about 2.2% to near $79.40 and that CAD often loses appeal when oil weakens, given Canada is a net energy exporter.

FXStreet also points to upcoming catalysts, saying the US dollar was flat after a strong Monday as traders look to the Federal Reserve’s policy announcement on Wednesday.

According to the CME FedWatch tool cited by FXStreet, traders assigned a 62% chance that the Fed will keep interest rates unchanged in the 3.50% to 3.75% range. The piece adds that USD/CAD is hovering around the 20-day EMA near 1.4103 and identifies 1.3962 to 1.4001 as a key demand zone, while a break above 1.4157 could open the door to a retest of the yearly high at 1.4248.

Latest closeWTI crude $91.10 ▲3.2%

More like this

Sources