Forex – USD/CAD Slips Lower With Eyes on Trump Speech, Fed

© Reuters. Broadly weaker greenback loses ground vs. loonie – The U.S. dollar slipped lower against its Canadian counterpart on Tuesday, as the greenback broadly weakened ahead of the highly anticipated State of the Union address due later in the day, as well as the Federal Reserve’s monthly policy decision on Wednesday.

was down 0.10% at 1.2327 by 09:30 a.m. ET (13:30 GMT), not far from last Thursday’s four-month low of 1.2281.

Investors remained cautious as U.S. President Donald Trump was set speak to Congress in his first official later Tuesday.

Comments from the White House recently weighed on the greenback, especially after U.S. Treasury Secretary Steven Mnuchin said that for American trade.

However, President Trump contradicted Mnuchin’s position by defending the need for a strong currency. Traders fear the U.S. administration may use currency policy as a tool to get better trade deals with other countries.

Market participants were also looking ahead to the Fed’s upcoming on Wednesday for potential indications on the pace of interest rate hikes this year. The U.S. central bank is widely expected to raise rates three times in 2018.

However, the commodity-related Canadian dollar’s gains were capped by dropping ahead of this week’s U.S. crude oil inventories data.

The loonie was lower against the euro, with up 0.42% at 1.5343.

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