USD/CAD Canadian Dollar Lower as Dollar Shakes Off Fed Rate Cut Pressure

The Canadian dollar slipped 0.12 percent on Tuesday after the market tried to scale back probabilities of multiple rate cuts in 2019 by the U.S. Federal Reserve. Trade war concerns also rose as the precedent of a quick win in the trade war with Mexico could see the US use the tool more this year. The USMCA ratification process is due to start and is not exempt from revisions based on political agendas. Uncertainty about what the outcome of the US-China trade dispute will be ahead of a potential meeting in Japan at the end of the month are giving the greenback a boost as its appeal as a safe haven rises. The US dollar is mixed against major pairs. The EUR and the GBP are higher against the greenback after President Trump tweeted earlier this morning about the unfair strength of the US dollar. Rising probabilities of an interest rate cut by the Fed are keeping the dollar under pressure but given the appeal of the currency as a safe haven during the US-China trade war it continues to appreciate despite the wishes of the Trump administration. The market is pricing in multiple rate cuts before the end of the year, but before that happens the case for a weaker US economy has to present itself before the Fed. Inflation data to be released on Wednesday could validate the downward trend started with the disappointing jobs report last week. Core inflation is expected to gain 0.2 percent and […]

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