Breaking News
Investing Pro 0
Cyber Monday Extended SALE: Up to 60% OFF InvestingPro+ CLAIM OFFER

USD/CAD: Loonie Set for Worst Monthly Close Against Greenback in 2.5 Years

Forex Sep 30, 2022 14:23
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.
 
USD/CAD
+0.06%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Ketki Saxena

Investing.com -- The Canadian dollar weakened against its US counterpart today (and set for its worst monthly decline against the greenback since March 2020) as the US dollar was boosted by today’s larger-than-expected jump in Personal Consumer Expenditures.

As the US Federal Reserve's preferred gauge of inflation, today’s indicator is a significant indicator that the US central bank will stick to its path of aggressive monetary policy tightening through the end of the year.

At 2:50 p.m ET, the USD/CAD pair was trading at C$1.3814 to a US dollar, up 1.00% in the day's trading, and with the day's range of 1.3658 - 1.3815.

The risk-sensitive loonie was further pressured by a slide in crude prices. While set to post a weekly gain, on the quarter, oil prices have seen their first decline since 2020 as worries of economic slowdown dominate.

The loonie is also losing ground against the greenback as the Fed is expected to have a terminal rate higher than the Bank of Canada’s, and be able to maintain it at that point for longer than the Canadian central bank will be able to.

Looking ahead, Matías Salord at FX Street writes “Even as markets calm down, moves larger than average in USD/CAD are likely next week. Market participants will continue to look particularly at the bond market, stocks and the pound. Next Friday, Canada and the US will release the official employment reports.”

From a technical perspective, Salord notes that “USD/CAD is moving with a bullish bias. The only bearish sign is the extreme overbought readings. The next strong barrier is the 1.3900 area. During the last days, the pair has been moving sideways between 1.3750 and 1.3600, holding onto most of the recent gains."

USD/CAD: Loonie Set for Worst Monthly Close Against Greenback in 2.5 Years
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email