USD/CAD Stuck at 1.4100 Amid Hawkish Fed Expectations and Oil Price Uncertainty
The USD/CAD exchange rate has been stuck around 1.4100 due to conflicting forces from both the US dollar and oil prices.
Hawkish expectations for the Federal Reserve's policy in October, along with strong U.S. economic data, are bolstering the greenback's interest-rate advantage.
On the other hand, rising crude-oil prices due to supply risks in the Middle East are supporting the Canadian dollar and capping further upside in the USD/CAD pair.
In fact, market expectations for a 25-basis-point rate hike by the Federal Reserve have increased to around 69.7% from 48.7% just one week ago, according to CME FedWatch data.