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USD/CAD extends its winning streak for the fifth consecutive day, trading around 1.4320 during the Asian hours on Wednesday. This upside could be attributed to the tepid Canadian Dollar (CAD) following dovish remarks from the Bank of Canada (BoC) Governor Tiff Macklem.Bank of Canada (BoC) Governor Tiff Macklem stated on Monday that the central bank is preparing for a future characterized by heightened uncertainty and increased vulnerability to economic shocks. He emphasized that the BoC will evaluate the need for further policy rate cuts on a case-by-case basis and anticipates a more gradual approach to monetary policy if the economy unfolds as projected.Meanwhile, Canadian Prime Minister Justin Trudeau is facing growing pressure to resign after Finance Minister Chrystia Freeland announced on Monday that she is stepping down from the Cabinet, according to CNN.The Consumer Price Index (CPI) released by Statistics Canada fell to 1.9% year-over-year in November, slightly below the market expectation of 2.0%. On a monthly basis, the CPI remained flat, aligning with forecasts, after rising 0.4% in October. Meanwhile, monthly core inflation declined by 0.1%, bringing the annual core CPI inflation rate down to 1.6% from October’s 1.7%.Traders are bracing for a potential 25 basis point rate cut by the US Federal Reserve (Fed) later in the North American session. According to the CME FedWatch tool, markets are now almost fully pricing in a quarter basis point cut at the Fed’s December meeting. Additionally, traders will closely monitor Fed Chair Jerome Powell’s press conference and Summary of Economic Projections (dot-plot) after the meeting.More By This Author:EUR/JPY Trades Below 161.50 After Pulling Back From Four-Week Highs NZD/USD Holds Gains Above 0.5750 Following Mixed Data From China XAG/USD Falls To Near $31.00 After Breaking Below Ascending Channel
