Canadian Dollar Under Pressure from Falling Crude Prices
The Loonie’s Struggle
The Canadian Dollar faced a challenging start against the US dollar due to the impact of falling crude prices. The commodity-linked currency was under pressure in a day of fluctuating trading but managed to hold its ground against the US dollar by the end of the trading day.
Market Trends
The US dollar exhibited weakness across the board as US Treasury yields declined. Investors adjusted their expectations for interest rate cuts from the US Federal Reserve ahead of key CPI data.
Fed Rate Cut Expectations
Market analysts are now predicting five Fed rate cuts in 2024, with expectations for a hold in January and cuts anticipated in March and May.
Expert Analysis
Analysts at Scotiabank note that the weekly chart shows a bullish ‘hammer’ candle developed through the turn of the year. They anticipate corrective gains in the USD in the next few weeks towards 1.34/1.35, with additional bullish momentum expected upon gains through high/low resistance at 1.3390/1.3400.
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The Canadian Dollar’s performance against the US dollar remains a topic of interest for investors. The impact of crude prices, market trends, and expert analysis all contribute to the ongoing evaluation of the currency’s position in the global market.
