USD/CAD slipped below 1.3850 amid market unease over the Fed’s independence following reports that Trump’s team aims to increase political influence over the central bank. The prospect of curtailed Fed autonomy pressured the USD, while the CAD gained modest support from stable oil prices and resilient Canadian economic data. Technical indicators suggest cautious bearish momentum, with key support levels near 1.3790 and 1.3700 in focus. Traders will closely monitor developments around U.S. monetary policy and political risks that could shape currency trends ahead.

USD/CAD slipped below 1.3850 amid growing market unease over the Fed’s independence as political pressures mount. Dovish rate hike expectations, firmer oil prices, and technical selling also weighed on the pair, boosting the Canadian Dollar. Traders remain cautious as Fed autonomy questions reshape monetary policy outlook.