USD/CAD Fails At 1.4435 And Pulls Back Below 1.4400 Weighed By A Softer US Dollar -

USD/CAD Fails At 1.4435 And Pulls Back Below 1.4400 Weighed By A Softer US Dollar

Dec 20, 2024Jeremy ParkinsonFinance0

The Canadian Dollar trims some losses with the USD pulling back ahead of US inflation data.

The US Dollar is correcting lower against its main rivals on Friday after having rallied sharply this week.

The USD/CAD has been capped at 1.4435 earlier today turning negative on the day below 1.4400 to approach Thursday’s lows, at 1.4345.

From a wider perspective, the pair maintains its broader positive bias intact and is on track to complete a four-week rally from levels below 1.4000 in late November.The focus today is on the US PCE Prices Index data, which is expected to confirm the Fed’s concerns about higher price pressures. Monthly inflation is expected to have remained steady at 0.2% with the year-on-year rate ticking up to 2.9% from the previous 2.8%.In Canada, October’s Retail Sales are expected to show that consumption increased 0.7% following a 0.4% increment in September, Excluding autos, however, sales of all other products are expected to have slowed down to 0.5% from 0.9% in the previous month,The diverging monetary policy paths of the Federal Reserve and the Bank of Canada and the declining Crude prices (Canadian main export) are crushing the loonie, which has lost nearly 7% over the last three months.The US Federal Reserve cut rates by 25 basis points on Wednesday but scaled back its easing projections to just two rate cuts in 2025, from the median of four cuts estimated in September.The Bank of Canada, on the other hand, slashed rates by 50 basis points for the second consecutive time last week and hinted to more rate cuts to support economic growth.
Canadian Dollar PRICE TodayThe table below shows the percentage change of Canadian Dollar (CAD) against listed major currencies today. Canadian Dollar was the strongest against the Australian Dollar.

USD EUR GBP JPY CAD AUD NZD CHF USD -0.21% -0.17% -0.38% -0.05% 0.17% 0.03% -0.38% EUR 0.21% 0.04% -0.13% 0.17% 0.37% 0.24% -0.17% GBP 0.17% -0.04% -0.18% 0.11% 0.30% 0.20% -0.20% JPY 0.38% 0.13% 0.18% 0.32% 0.52% 0.38% -0.00% CAD 0.05% -0.17% -0.11% -0.32% 0.21% 0.09% -0.31% AUD -0.17% -0.37% -0.30% -0.52% -0.21% -0.14% -0.54% NZD -0.03% -0.24% -0.20% -0.38% -0.09% 0.14% -0.39% CHF 0.38% 0.17% 0.20% 0.00% 0.31% 0.54% 0.39%

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 Canadian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent CAD (base)/USD (quote).More By This Author:USD/JPY Dips To Test A Previous Top At 156.60 Following Hot Japanese Inflation
USD/JPY Price Forecast: Bulls Pause For Breather Ahead Of US PCE Price Index
Japanese Yen Struggles To Capitalize On Modest Intraday Bounce; Remains Vulnerable