MarketPR
Currency markets pulled back to a cautious stance Wednesday ahead of a two-event gauntlet: the April US Consumer Price Index report and the Bank of Canada's rate decision, both capable of resetting expectations for the US dollar and the Canadian dollar in a single session.
The CME FedWatch Tool puts the probability of a Federal Reserve rate cut by September at roughly 60% — a figure the morning's CPI number will either validate or gut.
USD/CAD sat near 1.3650 heading in, with traders marking 1.3700 as resistance and 1.3600 as the floor to defend. The CPI Print: One Number, Two Scenarios for $FIAT The April CPI lands at 8:30 AM Eastern.
Economists expect core inflation to stay sticky above the Federal Reserve's 2% target, leaving the central bank's higher-for-longer posture intact — unless the data breaks the wrong way.
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