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USD/CAD holds above 1.4150 as hawkish Fed expectations lift the dollar

Markets are pricing a 65.0% probability of a Fed rate hike at the end of October, according to CME FedWatch.

Reported · Written up by our desk · Major Pairs

USD/CAD was trading above 1.4150, around 1.4155, in early European trading on Monday, with the US dollar edging higher versus the Canadian dollar, according to FXStreet.

The outlet links the move to hawkish Federal Reserve expectations, after Fed officials signaled concerns about persistently high inflation and suggested additional tightening may be warranted.

Traders are also awaiting more clues from upcoming Fed remarks before key Nonfarm Payrolls data later this week, FXStreet reports.

FXStreet adds that rising crude prices may provide support for the Canadian dollar, while markets continue to factor in the Fed outlook.

Latest closeWTI crude $92.44 ▼2.3%

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