Canadian Dollar edges slightly higher as traders await CPI and FOMC minutes
- USD/CAD loses ground on Monday as the US Dollar weakens amid improving market sentiment.
- Ongoing talks between Washington and Tehran support risk appetite and reduce demand for the Greenback.
- Investors now await Canadian inflation data and the FOMC minutes later this week.
USD/CAD trades around 1.3740 on Monday at the time of writing, down modestly by 0.05% on the day. The pullback in the US Dollar (USD) against its major peers is weighing on the pair after signs of easing geopolitical tensions in the Middle East.
The US Dollar weakens following comments from a spokesperson for Iran’s Foreign Ministry, who confirmed that discussions with the United States (US) are continuing through Pakistani mediators. According to the same source, Tehran remains focused on de-escalating the conflict, while technical discussions with Oman regarding the security of the Strait of Hormuz have also taken place.
This improvement in market sentiment reduces demand for safe-haven assets such as the US Dollar. The US Dollar Index (DXY), which measures the Greenback against a basket of major currencies, falls toward 99.10 after reaching an intraday high near 99.40 earlier in the day.
The Canadian Dollar (CAD) is also finding mild support after Oil prices stabilized, despite a correction in West Texas Intermediate (WTI) Oil from its recent May highs. As Canada remains a major Oil exporter, energy prices continue to have a significant influence on the Canadian currency.
With Canadian markets closed on Monday for Victoria Day, trading volumes remain relatively thin. Investors are now turning their attention to upcoming key economic releases. Canada’s Consumer Price Index (CPI) data for April will be released on Tuesday and could influence expectations regarding the Bank of Canada (BoC).
On the US side, traders will also focus on the release of the Federal Open Market Committee (FOMC) meeting minutes on Wednesday, as markets look for further clues about the future path of monetary policy from the Federal Reserve (Fed).
US Dollar Price Today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.19% | -0.53% | 0.05% | -0.07% | -0.21% | -0.47% | -0.22% | |
| EUR | 0.19% | -0.36% | 0.26% | 0.11% | -0.04% | -0.29% | -0.04% | |
| GBP | 0.53% | 0.36% | 0.62% | 0.46% | 0.33% | 0.07% | 0.32% | |
| JPY | -0.05% | -0.26% | -0.62% | -0.16% | -0.28% | -0.57% | -0.30% | |
| CAD | 0.07% | -0.11% | -0.46% | 0.16% | -0.13% | -0.40% | -0.14% | |
| AUD | 0.21% | 0.04% | -0.33% | 0.28% | 0.13% | -0.25% | 0.02% | |
| NZD | 0.47% | 0.29% | -0.07% | 0.57% | 0.40% | 0.25% | 0.26% | |
| CHF | 0.22% | 0.04% | -0.32% | 0.30% | 0.14% | -0.02% | -0.26% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
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