USD/CAD bulls are in town taking on the 1.3450s

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USD/CAD bulls are in town taking on the 1.3450s
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USD/CAD bulls are in town taking on the 1.3450s – by fx_ross USDCAD Commodities DollarIndex Fed

Fed sentiment is driving US yields and the US Dollar up. rallied to a one-week high on Wednesday as US bond yields rose and domestic data showed housing starts fell more than expected in March. At the time of writing, USD/CAD is trading around 1.3455 in early Asia.

In this regard, the futures pricing has show an 85.7% chance the Fed will hike rates 25 basis points when policymakers conclude a two-day meeting on May 3, according to CME's FedWatch Tool. However, the US dollar is getting a boost on hawkish themes coming through again.

Domestically, Canadian Housing Starts for March dropped 11% contributing to a slower trend in recent months that follows a rapid increase in borrowing costs. Also, Canadian producer prices rose by 0.1% in March from February.

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