The USD/CAD pair moved sideways near 1.3700 at the beginning of the final trading day in 2025.
Federal officials said they would consider lowering interest rates more if inflation goes down as predicted.
The Bank of Canada is probably not going to lower interest rates soon.
The USD/CAD pair moves closely around 1.3700 during the Asian session on Wednesday. The Loonie pair stays steady at the beginning of the final trading day of 2025 with low trading activity.
Right now, the US Dollar Index (DXY), which shows how strong the US dollar is compared to six major currencies, is rising to almost 98.26, which is the highest it has been in a week.
The US Dollar (USD) rose quickly on Tuesday, even though the Federal Open Market Committee (FOMC) meeting notes from December indicated that most officials agreed that more interest rate cuts might be needed after the December reduction, if inflation begins to slow down.
The FOMC minutes showed that most participants thought more interest rate cuts would probably be the right move if inflation goes down over time as people expect.
The most recent Consumer Price Index data shows that the overall rate of inflation slowed down to 2.7% compared to the same time last year in November, down from 3% in September.
Meanwhile, the Canadian Dollar (CAD) is moving steadily as people expect the Bank of Canada (BoC) to keep interest rates the same for now. This expectation is because inflation has stayed close to the 2% target over the past few months.
Federal officials said they would consider lowering interest rates more if inflation goes down as predicted.
The Bank of Canada is probably not going to lower interest rates soon.
The USD/CAD pair moves closely around 1.3700 during the Asian session on Wednesday. The Loonie pair stays steady at the beginning of the final trading day of 2025 with low trading activity.
Right now, the US Dollar Index (DXY), which shows how strong the US dollar is compared to six major currencies, is rising to almost 98.26, which is the highest it has been in a week.
The US Dollar (USD) rose quickly on Tuesday, even though the Federal Open Market Committee (FOMC) meeting notes from December indicated that most officials agreed that more interest rate cuts might be needed after the December reduction, if inflation begins to slow down.
The FOMC minutes showed that most participants thought more interest rate cuts would probably be the right move if inflation goes down over time as people expect.
The most recent Consumer Price Index data shows that the overall rate of inflation slowed down to 2.7% compared to the same time last year in November, down from 3% in September.
Meanwhile, the Canadian Dollar (CAD) is moving steadily as people expect the Bank of Canada (BoC) to keep interest rates the same for now. This expectation is because inflation has stayed close to the 2% target over the past few months.
