USD/CAD Reaches Near Two-Week High Ahead of Fed Decision
The USD/CAD exchange rate has been on a strong rally, posting its sixth consecutive daily gain and reaching a near two-week high of 1.3930 during Wednesday's Asian session.
Market attention is now shifting from the recent U.S. dollar strength to the Federal Reserve's upcoming interest-rate decision, with many expecting a 25-basis-point hike in the policy rate.
The Fed will conclude its September 15-16 monetary policy meeting on Wednesday, and investors are paying closer attention to the latest economic projections, the dot plot, and the policy guidance delivered by Fed Chair Jerome Powell during his post-meeting press conference.
A strong U.S. dollar, elevated U.S. Treasury yields, and expectations of Fed policy continue to underpin upward momentum for USD/CAD, while higher oil prices provide some hedging through the Canadian dollar's energy-related sensitivity.