The USD/CAD extends its upside and trades in positive territory for the second consecutive day during the early Asian session on Thursday. The rebound
in the pair is supported by the hawkish stance of the Federal Reserve after its policy meeting on Wednesday and the revised interest rate expectations for 2024. The pair currently trades near 1.3485, gaining 0.18% on the day.unchanged at 5.25-5.50% as widely expected in the market. Officials are becoming more confident that they could lower inflation without harming the economy or causing major job losses.reaffirmed the Fed's commitment to achieving 2% inflation.
Additionally, the Fed revised its Summary of Projections , indicating that Fed officials estimate the interest rate to hit 5.1% by the end of 2024 . The higher-for-longer rate narrative has propelled the US Dollar against its rivals and acts as a tailwind for the USD/CAD pair. On the Loonie front, a decline in oil price has undermined the commodity-linked Loonie as the country is the leading oil exporter to the United States. Data released on Tuesday showed that Canadian in August surged to 4.0% YoY from 3.3% in July. Meanwhile, the core CPI that excludes volatile oil and food prices rose to 3.3% YoY from 3.2% in the previous reading. These figures might convince the Bank of Canada to raise interest rates yet further.
Looking ahead, the US weekly Jobless Claims, the Philly Fed, and Existing Home Sales will be due on Thursday. On Friday, the preliminary US S&P Global PMI for September and Canadian Retail Sales for July will be released. Traders will take cues from these data and find trading opportunities around The
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