USD/CAD Teeters Below 1.3800 as Markets Price in Fed Rate Cuts Despite Currency’s Limited Momentum
USD/CAD struggles to break above 1.3800 as market participants price in Federal Reserve rate cuts expected by mid-2025. Despite mild intraday gains, the US dollar’s momentum is capped amid softer inflation data and cautious Fed commentary. Meanwhile, stable Canadian economic indicators and steady oil prices support the Canadian dollar. Traders remain watchful of central bank policy divergence shaping near-term currency moves.
