The US Dollar trims gains against its Canadian Counterpart on Wednesday. The pair is exploring session lows below 1.4030 on the early European morning session, down from Tuesday’s highs at the 1.4080 area.
The Greenback loses ground across the board on Wednesday as dovish remarks by Fed Chairman Jerome Powell cemented hopes for further rate cuts in October and December, sending trade war fears to the backseat.
Fed’s Powell hints at further rate cuts
Jerome Powell reiterated that the bank is slightly more concerned about the deterioration of the labour market than the inflationary risks, paving the path for further rate cuts in the next months.
Powell also affirmed that the end of the Fed is about to stop the balance sheet drawdown, the so-called “Quantitative Tightening” programme, as he assessed that liquidity conditions are gradually tightening
The Canadian Dollar’s recovery, on the other hand, remains frail, weighed down by the low price of Crude Oil, which is Canada’s main export. The US benchmark WTI Oil has bounced up from the five-month lows at $57.35 hit on Tuesday, but remains stalled near the $58.00 line on concerns that lower demand and progressive output hikes will lead to overproduction.
Source: https://www.fxstreet.com/news/usd-cad-hits-lows-below-14030-amid-generalised-us-dollar-weakness-202510150729
