The USD/CAD rises to 1.3660 while still adhering to a bearish trend. Investors exhibit a degree of caution in light of the ambiguous signals emanating from the US-Iran peace negotiations. Kevin Warsh, the nominee for Fed Chair, is scheduled to testify at the confirmation hearing later on Tuesday. The US Dollar exhibits slight gains against the Canadian Dollar on Tuesday, mitigating losses following a six-day selloff. The USD/CAD pair has attained session highs just above 1.3660, yet it remains in proximity to the five-week lows of 1.3635 established the prior day.
The CAD experienced a further uplift on Monday, following the release of Canada’s Consumer Price Index data, which indicated that inflationary pressures intensified in March, albeit to a lesser extent than market forecasts had anticipated. The Bank of Canada now possesses a degree of flexibility to maintain interest rates at their current levels as it anticipates additional data. Markets exhibit a degree of tranquility on Tuesday, as participants anticipate additional updates regarding the US-Iran peace negotiations. A report confirmed on Monday that Tehran will indeed send a delegation to Pakistan after previously threatening to withdraw from the peace process, in response to the US military’s seizure of an Iranian vessel in the Strait of Hormuz.
According to a report, an unnamed US official indicated that “things are moving forward” and suggested that US President Donald Trump may participate in the meeting, either in person or virtually, contingent upon the parties reaching an agreement. Iran, however, has expressed apprehension regarding US demands that it is not prepared to fulfill. Meanwhile, the two-week ceasefire concludes on Wednesday, with the US president confirming that it will not be prolonged. On Tuesday, the US economic calendar will gain momentum with the release of March Retail Sales data. Consumption is anticipated to rise by 1.4%, building on a 0.6% increase in February.
However, the control group, which holds greater significance for Gross Domestic Product calculations, is projected to decelerate to 0.2%, down from 0.5% in February. A few hours later, the newly appointed Federal Reserve Chairman, Kevin Warsh, will undergo a confirmation hearing at the US Senate, where the central bank’s independence is expected to be the primary focus of discussion.