USD/CAD tumbles to 1-week lows after Fed hints at a rate cut
- US Dollar drops and holds at daily lows after FOMC meeting.
- Fed’s Powell: Case for additional accommodation has strengthened.
The pair continues to trade near the lows, under 1.3300 as the greenback holds to losses. The Federal Reserve kept rates unchanged as expected and mentioned uncertainties had increased. The tone signals that it moved closer toward easing its policy. The word “patient” was removed from the statement helping speculations about a potential rate cut as soon as the July meeting.
During his press conference, Powell mentioned that the case for additional accommodations has strengthened in line with the FOMC statement. He added the US Central bank will act promptly if needed to sustain economic expansion.
The USD/CAD, that was already down for the day after Canadian inflation data, dropped further with the decline of the greenback on the dovish Fed. The pair is having the worst daily performance in months as it holds at 1-week lows, back under 1.3300 and looking at 1.3275, the next relevant support before the June low around 1.3240.
This article is published only for general use basic informatory purposes and should not be considered or depended on as a financial or investment advice. Investors should make sure that they understand the risks and seek independent financial advice at all times. CFDS ARE COMPLEX INSTRUMENTS AND COME WITH A HIGH RISK OF LOSING MONEY RAPIDLY DUE TO LEVERAGE.