USD/CAD appreciates to near 1.3700 as Fed delays the expected timing of the rate cut

USD/CAD broke its losing streak as higher-than-expected US PMI data supported the US Dollar. Fed’s Neel Kashkari argued that it will probably take a year or two to get inflation back to 2%. Higher Crude Oil prices could limit the downside of the commodity-linked Canadian Dollar. On Friday, a higher-than-expected US Purchasing Managers Index boosted the US Dollar , underpinning the USD/CAD pair. The US Composite PMI for June surpassed expectations, rising to 54.6 from May’s reading of 54.5.

Fed Bank of Minneapolis President Neel Kashkari argued on Thursday that it will probably take a year or two to get inflation back to 2%, per Reuters. According to the CME FedWatch Tool, investors are pricing in nearly 65.9% odds of a Fed rate cut in September, compared to 70.2% a week earlier. On Loonie’s front, the upward correction in crude Oil prices could limit the downside of the commodity-linked Canadian Dollar .

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