USD/CAD Extends Losses Amid Dollar Weakness
The how to buy xrp on coinbaseUSD/CAD pair has entered its second consecutive day of declines, touching levels not seen since late September. Currently trading around 1.3535-1.3540, the pair shows vulnerability to extending its three-week bearish trend as multiple fundamental factors converge.
Fed Dovish Expectations Weigh on Greenback
Market participants appear increasingly convinced the Federal Reserve has concluded its tightening cycle, with potential rate cuts now priced in for early 2024. Recent US economic indicators showing moderating inflation and cooling labor market conditions have reinforced this narrative. The resulting downward pressure on Treasury yields continues undermining dollar strength across currency markets.
Risk Appetite Further Undermines USD
Global equity markets maintaining their bullish momentum have reduced demand for the dollar's traditional safe-haven appeal. Interestingly, this occurs despite recent hawkish rhetoric from Fed officials attempting to temper market expectations about imminent policy easing.
Commodity Factors Create Mixed Signals
While oil prices retreat from recent highs due to China demand concerns and OPEC+ production cut uncertainties, Canada's unexpected Q3 economic contraction (-1.1% annualized) could eventually provide some counterbalance to the Loonie's strength. Energy market developments remain crucial for the commodity-linked Canadian dollar.
Key Events on the Horizon
Traders await several high-impact releases including Canadian employment data and US ISM Manufacturing PMI. However, all eyes will be on Fed Chair Jerome Powell's upcoming remarks, which could significantly influence near-term USD/CAD direction. The pair remains on track for its third weekly decline in what would mark four losing weeks out of the past five.
Market participants should monitor whether current technical levels hold or if the pair extends its descent toward longer-term support zones. The interplay between Fed policy expectations and commodity price action will likely determine the next meaningful move for this currency cross.