The USD/CAD pair edges higher to around 1.3750 during the early European trading hours on Monday. The US Dollar (USD) extends its upside against the Canadian Dollar (CAD) as traders have largely priced out US interest rate cuts this year, while expectations for a hike have risen.
Hotter-than-expected US inflation data released last week has fueled expectations that the US Federal Reserve (Fed) will keep interest rates elevated. Financial markets are now pricing in nearly a 48.4% probability the US central bank could hike rates by at least 25 basis points (bps) at its December meeting, compared with 14.3% a week ago, according to the CME FedWatch tool.
US President Donald Trump warned that Iran must act “fast” after efforts to end the US-Israeli war with Iran appeared to have stalled. Ongoing tensions between the US and Iran might continue to boost crude oil prices,…
