USDCAD Analysis – The Canadian dollar recently dipped below 1.34 against the US dollar, its best position since the beginning of August. This improvement comes as the US dollar weakens and the head of the Bank of Canada, Governor Tiff Macklem, made strong statements. Governor Macklem mentioned in his speech that it’s premature to think about reducing interest rates because inflation is still too high. Additionally, the price of oil is going up again. This happened after the US Federal Reserve’s less aggressive stance, which lowered the value of the US dollar.
The Canadian dollar, also known as the loonie, gained strength because there’s more international demand for goods priced in dollars. This is good news for Canada’s foreign currency situation. People trading in currencies are now looking forward to the upcoming inflation reports. These reports will give clues about what the Bank of Canada might do next regarding their financial policies.