USD/CAD consolidates around 1.3540, focus on Canada’s CPI data

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USD/CAD continues its upward trend for the fourth consecutive session, trading near the significant level of 1.3540.

USD/CAD exhibits sideways movement with a positive bias to extend gains. Fed could uphold its elevated interest rates to curb inflationary pressures. Canadian Consumer Prices are expected to show an increase in February. The US Dollar advances, propelled by higher US Treasury yields. Bond markets are facing selling pressure as additional signs of resilience in the United States economy emerge, prompting traders to revise their expectations for fewer interest rate cuts this year.

The Canadian Dollar might have found support from the surge in Crude oil prices, considering Canada's status as the largest oil exporter to the United States . West Texas Intermediate hovers around $82.10 per barrel, nearing its highest levels since early November, bolstered by ongoing supply-side worries. On Monday, the Canadian stock market closed slightly lower as investors awaited Canada's Consumer Price Index data scheduled for Tuesday.

 

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USD/CAD IG Client Sentiment: Our data shows traders are now net-short USD/CAD for the first time since Feb 15, 2024 14:00 GMT when USD/CAD traded near 1.35.Traders are further net-short than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger USD/CAD-bullish contrarian trading bias.
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