The widening interest rate differential made the U.S. Dollar a more attractive investment, contributing to the weakness in CAD. The Forex pair also gained after money market traders lowered the probability of a 50-basis point interest rate hike by the Bank of Canada in October to 85%.
The main trend is up according to the daily swing and the trend is likely to continue after the Fed raises its benchmark interest rate. On the daily chart, the next two targets are 1.3421 and then 1.4 .
The inflation data wasn’t the only factor weighing on the Canadian Dollar. The currency was also driven lower by a plunge in crude oil prices and weak investor sentiment.
The main trend is up according to the daily swing and the trend is likely to continue after the Fed raises its benchmark interest rate. On the daily chart, the next two targets are 1.3421 and then 1.4 .
The inflation data wasn’t the only factor weighing on the Canadian Dollar. The currency was also driven lower by a plunge in crude oil prices and weak investor sentiment.
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Canadian dollar index is intensely bearish and DXY is intensely bullish
