Canadian Dollar Comes Under Pressure from Falling Crude Prices By Investing.com

© Reuters.

By Ketki Saxena

Investing.com – The Canadian Greenback began the day on the again foot in opposition to its US counterpart, as crude costs weighed on the commodity linked .

In a day of up and down buying and selling, the loonie confronted stress in opposition to most main currencies, however managed to kind of maintain its in opposition to the US via the top of the buying and selling day.

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The US greenback remained delicate throughout the board as US Treasury yields declined and, forward of key CPI information, as traders adjusted expectations for rate of interest cuts from the US Federal Reserve.

Markets at the moment are 5 Fed price cuts in 2024, with a maintain anticipated in January however cuts anticipated in March and Might.

Trying forward for the pair, analysts at Scotiabank (TSX:) observe, “The weekly chart exhibits a bullish ‘hammer’ candle developed via the flip of the yr.”

“A excessive shut for the USD final week – regardless of the hefty intraday swings within the USD Friday – provides emphasis to the bullish sample of commerce and helps the outlook for some further, corrective beneficial properties within the USD within the subsequent few weeks in direction of 1.34/1.35.:

“Good points via excessive/low resistance at 1.3390/1.3400 will add to near-term bullish momentum.”