USD/CAD edges lower to around 1.3730 in Tuesday’s early Asian session.
Fed’s Bowman said the time to cut interest rates is getting nearer.
Hopes of de-escalating the Middle East conflict after Iran’s strike against a US base undermine the US Dollar.
The USD/CAD pair trades with mild losses near 1.3730 during the early Asian session on Monday. The dovish remarks from the Federal Reserve (Fed) officials and easing tension in the Middle East weigh on the US Dollar (USD). Investors brace for Chair Jerome Powell’s semiannual testimonies and the release of US Consumer Confidence later on Tuesday.
Fed’s Vice Chair for Supervision Michelle Bowman said on Monday that the time to cut interest rates is getting nearer as risks to the job market may be on the rise. Bowman added that inflation appears to be on a sustained path back to 2% and she is less concerned that tariffs will cause an inflation problem. Her dovish comments have dragged the Greenback lower against the Canadian Dollar (CAD).
Iran fired missiles at the Al Udeid Air Base in Qatar on Monday. Qatar officials said that the missile barrage was intercepted and that the base had been evacuated in advance. Reuters reported early Tuesday that US President Donald Trump said that a "complete and total" ceasefire between Israel and Iran will go into effect in order to end the conflict between the two nations.
A senior Iranian official confirmed to Reuters that Tehran agreed to a Qatari-mediated, US-proposed ceasefire with Israel. Hopes of de-escalating the Middle East conflict undermine the safe-haven currency like the US Dollar.
Meanwhile, a fall in Crude Oil prices might weigh on the commodity-linked Loonie and cap the downside for the pair. It’s worth noting that Canada is the largest oil exporter to the US, and lower crude oil prices tend to have a negative impact on the CAD value.
* The content presented above, whether from a third party or not, is considered as general advice only. This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.
