© Reuters. The USD/CAD slips with the attention on Trump
Investing.com – The u.s. dollar lost ground against its canadian counterpart on Tuesday, as the greenback has generally weakened ahead of the highly anticipated speech from Trump, expected later in the day, as well as the political decision of the monthly federal Reserve on Wednesday.
The USD / CAD fell 0.10% to 1,2327 at 9.30 am (13.30 GMT), not far from the lowest of a four-month 1,2281 recorded last Thursday.
Investors remained cautious as u.s. president Donald Trump spoke before Congress in his first official speech on the state of the Union last Tuesday.
The comments of the White House have recently weighed on the greenback, especially after the us Treasury secretary, Steven Mnuchin, has said that a weaker u.s. dollar was beneficial for the american trade.
However, the president, Trump has contradicted the position of Mnuchin defending the need for a strong currency. Traders fear that the u.s. government uses the monetary policy to achieve better trade agreements with other countries.
Market participants also await the next decision of the Fed policy decision on Wednesday, for potential indications on the pace of interest rate increases this year. The u.s. central bank is expected to greatly raise its rates three times in 2018.
However, gains in the canadian dollar were capped by a drop in oil prices before this week’s data on crude oil inventories in the United States.
The loonie was lower against the euro, with EUR / CAD declining by 0.42% to 1,5343.