USD/CAD Holds Steady Ahead of BoC Speech and US Inflation Data
The USD/CAD pair remained relatively unchanged in Tuesday's European trading session, hovering just above 1.3550. Investors are cautiously awaiting the Bank of Canada (BoC) Governor Tiff Macklem's speech later today, which is expected to provide insights into the central bank's monetary policy outlook for the remainder of the year.
Given the recent rise in the Canadian unemployment rate and the subdued economic environment, market participants anticipate a dovish tone from Governor Macklem. The BoC has already implemented significant rate cuts this year and is likely to continue easing monetary policy to support economic growth.
Meanwhile, the broader market sentiment is cautious as investors prepare for the release of US Consumer Price Index (CPI) data on Wednesday. The CPI report will play a crucial role in determining the Federal Reserve's (Fed) decision on interest rate cuts. Recent Fed statements have emphasized the importance of preventing job losses, but the significance of inflation data has increased following the mixed Nonfarm Payrolls report.