USD/CAD climbs to near 1.3350 amid firm US Dollar ahead of FOMC minutes
- USD/CAD advances to near 1.3350 as investors’ risk-appetite fades.
- The FOMC minutes will provide outlook on inflation and interest rates.
- Canadian jobless rate is seen higher at 5.9% vs. 5.8% in November.
The USD/CAD pair jumps to near the crucial resistance of 1.3350 in the late London session. The Loonie asset recovers swiftly, following footprints of the US Dollar Index (DXY) amid caution among market participants ahead of the Federal Open Market Committee (FOMC) minutes and the United States ISM Manufacturing PMI for December.
S&P500 futures have generated nominal losses in the European session, portraying further decline in the risk-appetite of the market participants. The USD Index advances to near 102.50 as chances of a likely rate cut decision by the Federal Reserve (Fed) from March have eased slightly. The 10-year US Treasury yields have extended their upside to near 4%.
The FOMC minutes will demonstrate how much policymakers are interested in reducing interest rates. Meanwhile, the US factory data will be keenly watched. As per the preliminary estimates, the Manufacturing PMI is seen higher at 47.1 from the prior reading of 46.7 but will remain below the 50.0 threshold consecutively for 14th month.
In addition to that, US JOLTS Job Openings for November will be in focus. Investors have projected that US employers posted 8.85M jobs, which are higher than 8.733M postings recorded in October.
On the Canadian Dollar front, investors await the employment data for December, which will be published on Friday. As per the estimates, the Unemployment Rate rose to 5.9% against the former reading of 5.85. Number of job-seekers employed by Canadian employers were 13.5K, lower than 24.9K additions in November.