Jan 9, 2024: The Canadian Dollar faced a challenging start against its U.S. counterpart, influenced by the downward pressure exerted by declining crude prices on the commodity-linked loonie.
Throughout a day of fluctuating trade movements, the loonie experienced strain against most major currencies. However, it managed to maintain a relatively stable position against the U.S. dollar as the trading day concluded.
The US dollar demonstrated weakness broadly, marked by a decline in US Treasury yields and a shift in investor expectations concerning potential interest rate cuts by the US Federal Reserve. Anticipation prevailed ahead of significant CPI data.
Presently, market sentiments indicate the pricing in of five Fed rate cuts in 2024. The expectation includes a hold in January but anticipates cuts in March and May.