Canadian Dollar Forecast: USD/CAD Advances Toward Yearly Open – Breakout Risk Builds
USD/CAD is pushing higher after finding footing along long-term slope support, carrying price back toward the yearly open — a level that has repeatedly served as a structural pivot. The recovery has been orderly, but it remains confined within the broader downtrend framework.
Fed Minutes Indicate Possible Rate Hikes if Inflation Persists Amid Current Pause
Federal Reserve officials signaled that interest rate hikes may be necessary if inflation remains elevated, despite holding rates steady at 3.5%–3.75%. The policy decision included two dissenting votes favoring a rate cut, reflecting differing views within the Fed.
Gold Surges Above $4,900 Amid Thin Holiday Trading and Geopolitical Concerns
Gold prices climbed back above $4,900 as dip-buyers took advantage of thin holiday market conditions. Analysts anticipate further gains driven by ongoing geopolitical risks and uncertainty surrounding Federal Reserve policy.
EUR/HUF: Pre-cut strength and limited downside – ING
EUR/HUF: Pre-cut strength and limited downside – ING
RBNZ Governor Breman Signals Possible Policy Adjustment Amid Elevated Inflation
Reserve Bank of New Zealand Governor Breman indicated that the monetary policy committee may adjust policy if the inflation outlook changes, aiming to bring inflation back to target. He expressed discomfort with the current inflation rate of 3.1%, which exceeds the RBNZ's target, while noting modest wage growth and spare economic capacity.
Most Fed Officials Prefer Steady Rates, Open to Future Hikes or Cuts Based on Inflation
The majority of Federal Reserve officials support maintaining current interest rates, while remaining open to raising rates if inflation remains above target or cutting them if inflation decreases as expected. This cautious stance reflects ongoing concerns about inflation dynamics and economic conditions.
Fed Notes Labor Market Stabilization and Solid Economic Growth Amid Inflation Targeting
Federal Reserve participants observed stabilization in the labor market and solid economic growth, with inflation expected to move toward the 2% target. However, the pace and timing of these changes remain uncertain.
Fed Staff Predict Strong Economic Activity in 2026 with Slightly Higher Inflation and Lower Unemployment
Federal Reserve staff forecast robust economic growth continuing through 2026, accompanied by a modest rise in inflation and a gradual decrease in unemployment rates. These projections indicate a resilient economy with evolving labor market conditions.
Canada Considers Lifting Some Economic Sanctions on Syria, Says Foreign Minister Anand
Canada's Foreign Minister Anand announced the possibility of lifting certain economic sanctions related to Syria, indicating a potential shift in diplomatic and trade relations. This move could impact international economic dynamics involving Syria.
U.S. Dollar Tests Weekly Highs Ahead Of FOMC Minutes: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY
The American currency gains ground, supported by encouraging economic reports.