The USD/CAD pair has turned sideways after a perpendicular decline move above the psychological resistance of 1.3500 in the early Tokyo session. The Loonie asset is expected to remain on the tenterhooks ahead of the interest rate decision by the Bank of Canada (BoC) and the United States inflation data, which are scheduled for Wednesday.
BoC Governor Tiff Macklem might stick to its plan of keeping rates steady as Canada’s inflation has been declining consistently.
Investors’ risk appetite is improving as investors are digesting one more rate hike from the Federal Reserve (Fed) in its next month's policy meeting due to the tight labor market. S&P500 futures have added some gains in early Asia after a recovery move on Monday. The US Dollar Index (DXY) showed a gradual correction after failing to surpass to reclaim the critical resistance of 103.00.
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