USD/CAD steadies near 1.4010 as US government shutdown ends
The post USD/CAD steadies near 1. 4010 as US government shutdown ends appeared com. USD/CAD halts its four-day losing streak, remaining flat and trading around 1. 4010 during the Asian hours on Thursday. The pair may gain ground as the US Dollar (USD) could further appreciate amid improving sentiment, driven by the end of the United States (US) government shutdown. Reuters reported that US President Donald Trump signed the government funding bill on Thursday, marking the official end of the longest government shutdown in US history. The bill requires the Government to resume normal operations and calls for direct payment for individuals to purchase healthcare. Additionally, the US Dollar may also gain support from hawkish Fedspeak, which decreased the odds of the Federal Reserve (Fed) rate cut in December. The CME FedWatch Tool shows markets pricing in nearly a 60% chance of a 25-basis-point Fed rate cut in December, down from 67% a day ago. Atlanta Fed President Raphael Bostic addressed economic trends at the Atlanta Economic Club on Wednesday. Bostic cautioned that easing policy too soon could “feed the inflation beast,” while noting that a sharp downturn in the labor market is unlikely in the near term. The downside of the USD/CAD pair could be restrained as the Canadian Dollar (CAD) may gain on a cautious tone surrounding the Bank of Canada (BoC) policy outlook. Rate markets expect the BoC to keep interest rates unchanged at least through the end of 2026, though that could change if economic conditions worsen. Canadian Dollar FAQs The key factors driving the Canadian Dollar (CAD) are the level of interest rates set by the Bank of Canada (BoC), the price of Oil, Canada’s largest export, the health of its economy, inflation and the Trade Balance, which is the difference between the value of Canada’s exports versus its imports. Other factors include market sentiment whether investors are taking. Continue reading USD/CAD steadies near 1.4010 as US government shutdown ends