© Reuters. US currency holds steady vs. loonie in early trade
Investing.com — The US dollar almost unchanged near three-week highs against its Canadian counterpart on Tuesday, as investors eyed a speech by Federal Reserve chair Janet Yellen due later in the day and lower oil prices weighed on the commodity-based Canadian currency.
USD/CAD was little changed at 1.2361 from 09:30 a.m. ET (13:30 GMT).
Janet Yellen’s comments will be closely monitored for any new knowledge on the policy, after the US Central Bank last week announced it would start down to $4.5 trillion, trimming of assets and signals, it is likely to be rates this year to increase again.
New York Federal Reserve Bank President William Dudley said on Monday that the Fed is on course, gradually the interest rates given factors depressing inflation «fading» and the US economy, the fundamentals are solid.
“I expect that inflation will rise and in order to stabilize the (Fed’s) 2% target in the medium term,» he said before adding that to remove «in response, the Federal Reserve is likely to continue monetary policy accommodation gradually.»
However, Chicago Federal Reserve Bank President Charles Evans said that the U.S. Central Bank should wait until there are clear signs that the income and the prices will rise before the interest rates a warning that the movement is too fast, would be a policy of «misstep.»
Meanwhile, investors remained cautious after North Korea’s shooting foreign Minister Ri Yong-Ho said on Monday that President Donald Trump had declared war on the country, and that Pyongyang reserved the right to U.S. bombers, even if they are not in the air space.
The Canadian dollar was also locked, weighed down by a slide in oil prices, as a trader, the profits from the raw materials of the recent rally to multi-month highs.
The loonie was higher against the euro, with EUR/CAD down 0.52% at 1.4578.