Connect with us

Economics

USD/CAD steady, FOMC minutes loom

The Canadian dollar has posted slight losses on Wednesday, erasing most of the gains seen on Tuesday. In the North American session, USD/CAD is trading at 1.3272, down 0.32% on the day. Canada Ivey PMI disappoints Canada’s Ivey PMI posted a reading of 54.3 in September, a sharp drop from the August reading of 67.8 […]

Share this article:

Published

on

This article was originally published by Market Pulse

The Canadian dollar has posted slight losses on Wednesday, erasing most of the gains seen on Tuesday. In the North American session, USD/CAD is trading at 1.3272, down 0.32% on the day.

Canada Ivey PMI disappoints

Canada’s Ivey PMI posted a reading of 54.3 in September, a sharp drop from the August reading of 67.8 points. The reading was well off the forecast of 64.5 points. This points to a softer pace of expansion than expected in September. Still, investors didn’t appear concerned over the slowdown, as the Canadian dollar had a winning session on Tuesday. Recent economic data indicates that Canada’s economy is in recovery mode, but the Covid-19 pandemic is still hampering economic activity.

All eyes on Federal Reserve

The Federal Reserve will be on centre stage later in the day, with the release of the FOMC minutes (18:00 GMT). The Fed recently modified its stance on inflation to “average inflation targeting”, which means that the Fed is no longer committed to raising interest rates if inflation overshoots the two percent level. At last month’s policy meeting, the Fed reiterated that it does not plan to hike interest rates before 2023, and this has made the US dollar less attractive for investors. If the minutes reiterate the dovish tone of the policy meeting, the greenback could come under pressure in the North American session.

 

USD/CAD Technical

  • 1.3267 is under pressure in support. Below, there is support at 1.3218
  • 1.3341 is the next resistance line.Close by, there is resistance at 1.3366
  • The pair broke below the 20-day MA line on Tuesday, which signifies a downward trend

us dollar
inflation

Share this article:

Economics

Beware! 7 Growth Stocks Waving Massive Red Flags Right Now

While hopes for long-term returns may lure investors to growth stocks, some of these very stocks should be avoided.  Especially if they’re waving red…

Share this article:

Continue Reading
Economics

‘Higher For Longer’ Reality-Check Wrecks Bonds, Banks, & Big-Tech

‘Higher For Longer’ Reality-Check Wrecks Bonds, Banks, & Big-Tech

Despite being told – for months – that The Fed wanted to keep rates…

Share this article:

Continue Reading
Economics

Dear Potential BIRK Stock Investors, Mark Your Calendars for an October Birkenstock IPO

Source: shutterstock.com/Josh Forden
Following a long drought in high-profile initial public offerings (IPOs), sandal maker Birkenstock is allegedly poised…

Share this article:

Continue Reading

Trending