Canadian Dollar Advances Ahead Of Fed Decision
July 29 2024 - 9:11AM
RTTF2
The Canadian dollar climbed against its most major counterparts
in the New York session on Monday, as investors awaited the U.S.
Federal Reserve's interest rate decision later this week for more
clues on the monetary policy outlook.
The Fed is widely expected to keep interest rates unchanged but
is likely to signal a rate reduction in September.
Monetary policy decisions in Japan and the U.K. are also due
this week.
The U.S. jobs report for July, closely watched surveys on U.S.
and global manufacturing, Eurozone gross domestic product and
inflation data, and Chinese factory activity data may influence
trading sentiment as the week progresses.
The Organization of Petroleum Exporting Countries and its
allies, known as OPEC+, plans to hold a virtual meeting on
Thursday, and it is uncertain whether there will be any changes in
production.
In its last meeting held in June, the oil cartel had decided to
extend its voluntary production cuts till 2025.
The loonie recovered to 0.9044 against the aussie and 111.38
against the yen, from an early low of 0.9076 and a 4-day low of
110.71, respectively. The currency is likely to locate resistance
around 0.86 against the aussie and 118.00 against the yen.
The loonie touched 1.4961 against the euro, setting a 4-day
high. Next key resistance for the currency is seen around the 1.46
level.
In contrast, the loonie fell to near a 9-month low of 1.3865
against the greenback. The loonie is seen finding support around
the 1.41 level.
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