USDCAD trading range reflects ongoing tariff concerns

The US dollar is facing pressure against several major currencies, despite positive economic reports like the Retail Sales data. Recently, market expectations for the Federal Reserve's interest rate cuts have slightly decreased. The focus is now on the upcoming Federal Open Market Committee (FOMC) meeting, where the Fed is likely to maintain the current interest rates. In Canada, the Bank of Canada (BoC) cut interest rates by 25 basis points to 2.75% due to concerns about slower economic growth stemming from trade uncertainties and tariffs from the US. BoC Governor Tiff Macklem highlighted the economic challenges, warning that ongoing trade conflicts could hinder GDP growth, weaken the job market, and lead to higher inflation. Current predictions suggest a 57% chance that rates will remain unchanged at the next meeting, with potential easing expected by year-end. Looking at the USDCAD currency pair, it has been fluctuating between 1.42 and 1.45, reflecting the uncertainty surrounding tariffs. On a four-hour chart, the price recently dropped below 1.4365, prompting sellers to aim for the lower range around 1.4245. This level could present a buying opportunity for investors looking for a rebound. On an hourly chart, buyers seem poised to purchase around the 1.4245 mark, while sellers are eyeing a potential drop below this level. Today's Canadian Consumer Price Index (CPI) report is expected, along with the FOMC policy decision tomorrow. Additionally, figures regarding US Jobless Claims will be released on Thursday, followed by Canadian Retail Sales data on Friday.