USD/CAD Price Forecast: Buyers challenge 100-day SMA after double-bottom formation
USD/CAD edges higher on Monday as Fed rate hike expectations lift the US Dollar (USD) to a nearly two-week high, while rising Oil prices provide little support to the commodity-linked Canadian Dollar (CAD).
On Monday, the USD/CAD pair experienced an upward trend, driven by increased expectations of a Federal Reserve rate hike, which boosted the US Dollar (USD) to a nearly two-week high. However, the rising prices of Oil provided limited support to the commodity-linked Canadian Dollar (CAD). As of the time of writing, the pair was trading at approximately 1.3898, maintaining its bullish momentum for the fourth consecutive day.
Analysts are eagerly awaiting the Federal Reserve's interest rate decision on Wednesday, with the CME FedWatch Tool projecting a 92.7% probability of a 25-basis-point increase, potentially raising the federal funds target range to 3.75%-4.00%. If the Fed's decision is hawkish, it could widen the interest rate gap between the Federal Reserve and the Bank of Canada (BoC), which kept its policy rate at 2.25% earlier this month, potentially supporting further gains in USD/CAD.
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