USD/CAD moves toward multi-year highs above 1.4400 due to risk aversion, lower Oil prices
The post USD/CAD moves toward multi-year highs above 1.4400 due to risk aversion, lower Oil prices appeared on BitcoinEthereumNews.com.
USD/CAD appreciates toward 1.4467, the highest level not seen since March 2020. The US Dollar strengthened as the Fed may adopt caution regarding additional rate cuts. The commodity-linked CAD struggles due to declining crude Oil prices. USD/CAD retraces its recent losses and edges higher toward 1.4467, the highest level not seen since March 2020, which was recorded in the previous session. The pair trades near 1.4410 during the Asian hours on Friday. The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six other major currencies, maintains its position near 25-month high at 108.49, marked on Thursday, following key economic data from the United States (US). US Gross Domestic Product (GDP) Annualized reported a 3.1% growth rate in the third quarter, surpassing both market expectations and the previous reading of 2.8%. Additionally, Initial Jobless Claims dropped to 220,000 for the week ending December 13, down from 242,000 in the prior week and below the market forecast of 230,000. The US Dollar strengthened the Fed’s emphasis on exercising caution regarding additional rate cuts. Fed Chair Jerome Powell explained that the central bank would be wary of further cuts, as inflation is expected to remain persistently above the 2% target. The Fed’s monetary policy statement indicated that economic activity remained robust, while noting that labor market conditions had softened. The Canadian Dollar (CAD) faces headwinds as expectations grow for further rate cuts by the Bank of Canada (BoC) in 2025, although the era of large, aggressive reductions may have passed. Additionally, declining crude Oil prices are pressuring the commodity-linked CAD, given that Canada is the largest Oil exporter to the United States. Traders will closely watch Canadian October Retail Sales data on Friday. Meanwhile, in the United States, attention will focus on the Personal Consumption Expenditures (PCE)…