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The USD/CAD pair faces slight pressure near the key support of 1.4400 in Monday’s North American session. The Loonie pair ticks lower as the US Dollar (USD) trades subduedly in illiquid market ahead of New Year. The US Dollar Index (DXY), which gauges the Greenback’s value against six major currencies, struggles around 108.00.Though the Greenback edges lower on Monday but it is almost set to wrap up the calendar year with 6.7% gains, largely came in last three months as investors priced in strong growth and higher inflation in the United States (US) economy in 2025 after victory of Republican Donald Trump in Presidential elections.Trump is expected to tight immigration controls, raise import tariffs and lower taxes under his administration. The impact is already visible as the Federal Reserve (Fed) has signaled fewer interest rate cuts for the next year. However, Fed Chairman Jerome Powell has refrained from guiding any impact of Trump’s policies on economy, inflation and interest rates.Jerome Powell said on December 18, “It is very premature to make any kind of conclusions”. “We don’t know what will be tariffed, from what countries, for how long, in what size.” Meanwhile, the broader outlook of the Canadian Dollar (CAD) remains weak as the Bank of Canada (BoC) is expected to continue reducing interest rates further to avoid risks of inflation undershooting the central bank’s target of 2%.The BoC reduced its key borrowing rates by 175 basis points (bps) to 3.75% this year.More By This Author:NZD/USD Price Forecast: Surges Above 0.5650Pound Sterling Ticks Lower In Quiet Trading Session On Marginal Rise In BoE Dovish Bets EUR/USD Consolidates In Illiquid Market Amid Year-End Trading
