Home›Forex›Major Pairs›USD/CAD holds near 1.3850 as traders await Jackson Hole

USD/CAD holds near 1.3850 as traders await Jackson Hole

After Wednesday’s PCE data met expectations, CME FedWatch shows September hike odds rising to 40% from 36%.

Reported · Written up by our desk · Major Pairs

The Canadian dollar was steady in early European trading, with USD/CAD holding around 1.3850 as traders largely stayed on the sidelines ahead of Fed Chair Kevin Warsh’s speech at the Jackson Hole symposium later on Friday, FXStreet reports.

Attention is focused on what Warsh signals about the path for US interest rates and inflation back toward the Fed’s 2% target. FXStreet notes that the core PCE Price Index inflation data released on Wednesday came in line with market expectations, lifting trader expectations for a September rate increase.

CME FedWatch data cited by FXStreet shows the probability of a September hike rising to 40% from 36% before the data release. The piece also says any hawkish comments could help limit near term Greenback losses.

FXStreet further points to an escalating US Canada trade dispute that could weigh on the Canadian dollar. It cites Canada’s Department of Finance saying it added 50% tariffs on US made copper wire and wood charcoal to its retaliation list as part of the response to the removal of fish and seafood products, while Standard Chartered economists argue policymakers may wait for more data on the tariffs’ impact.

Latest closeCopper $6.713 ▲0.0%

More like this

Sources