{
  "id": 7598362,
  "title": "Canadian Dollar remains vulnerable aas Fed takes centre stage",
  "url": "https://urgent.news/2026/09/15/canadian-dollar-remains-vulnerable-aas-fed-takes-centre-stage",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-15T17:14:16.000Z",
  "source": {
    "name": "FXStreet",
    "slug": "fxstreet",
    "url": "https://www.fxstreet.com/news/canadian-dollar-remains-vulnerable-aas-fed-takes-centre-stage-202609151714"
  },
  "original_language": "en",
  "account": "The Canadian Dollar (CAD) remains vulnerable as the Federal Reserve (Fed) takes center stage with its upcoming monetary policy announcement. The USD/CAD pair has advanced for a fifth consecutive day, nearing a two-week high, while the US Dollar (USD) stays supported ahead of the Fed's decision. However, rising oil prices offer some respite to the commodity-linked Canadian Dollar, keeping its gains in check. At the time of writing, USD/CAD trades around 1.3913, barely changed from the previous trading session. Markets almost fully price in a Fed rate hike on Wednesday, as the energy shock from the Middle East conflict adds complexity to the central bank's task of bringing inflation back towards its 2% target. With headline Consumer Price Index (CPI) inflation at 3.4% year-over-year in August and Producer Price Index (PPI) accelerating to 5.4%, the benchmark 10-year US Treasury yield reached above 5%, its highest level since 2007. Hawkish Fed expectations and elevated Treasury yields keep the US Dollar supported. The US Dollar Index (DXY), tracking the Greenback against six major currencies, is near a two-week high at 99.60. Traders will now focus on the updated economic projections and comments from Fed Chair Kevin Warsh, especially how policymakers evaluate oil-driven inflation amid ongoing war-related energy price hikes. West Texas Intermediate (WTI) Oil is trading above $100 a barrel, similar to levels seen on May 21. While higher oil prices typically bolster the Canadian Dollar, the Loonie struggles due to a stronger US Dollar and hawkish Fed expectations. The Bank of Canada (BoC) maintains a steady policy stance, tilting the interest rate advantage towards the USD. Scotiabank strategists note that the latest Canadian CPI release was \"broadly in line with expectations\" but did little for the CAD or short-term rates. However, underlying trends in core measures suggest the Bank of Canada could begin normalizing still accommodative monetary policy later in the year. On the technical front, they identify a significant resistance zone around 1.39, defined by trend resistance, moving averages, retracement levels, and the early September high. Support is expected from 1.3825/30 and 1.3730/60. In the US, monetary policy is governed by the Federal Reserve, which has two mandates: achieving price stability and full employment. The Fed's primary tool is adjusting interest rates. When inflation rises above the 2% target, the Fed raises rates, strengthening the USD by making the US more attractive for international investment. Conversely, when inflation falls below 2% or unemployment is too high, the Fed may lower rates to encourage borrowing, weakening the USD. The Fed meets eight times a year to assess conditions and make monetary policy decisions. The FOMC, composed of twelve officials, including the seven members of the Board of Governors, the president of the Federal Reserve Bank of New York, and four regional Reserve Bank presidents, meets to determine policy. In extreme cases, the Fed can implement Quantitative Easing (QE), increasing credit flow in a stagnant financial system by printing more dollars and buying high-grade bonds from financial institutions. This typically weakens the USD. Conversely, Quantitative Tightening (QT) occurs when the Fed stops buying bonds and does not reinvest principal from maturing bonds, usually strengthening the USD.",
  "summary": "USD/CAD extends its advance for a fifth consecutive day on Tuesday, hovering near a two-week high as the US Dollar (USD) stays firmly supported ahead of the Federal Reserve’s (Fed) monetary policy announcement on Wednesday.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "FXStreet",
        "title": "Canadian Dollar: Remains slightly softer against US Dollar – Scotiabank",
        "url": "https://urgent.news/2026/09/15/canadian-dollar-remains-slightly-softer-against-us-dollar-scotiabank",
        "published": "2026-09-15T13:50:11.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}