Forex News: Canadian Dollar Advances Amid Risk Appetite

Canadian Dollar Advances Amid Risk Appetite

(RTTNews) - The Canadian dollar climbed against its major counterparts in the New York session on Tuesday, as U.S. stocks recovered following a sell-off on Monday.

Traders focus on Federal Reserve meeting for additional insights into the monetary policy outlook.

The Fed is widely expected to leave interest rates unchanged on Wednesday, but traders are likely to pay close attention to the accompanying statement for clues about the outlook for rates.

The European Central Bank (ECB) meets on Thursday and another rate cut is fully priced in by markets.

The ECB is expected to continue its rate-cutting cycle in 2025, with analysts expecting moderate cuts of 0.25 percentage points each, probably in each of the four rate monetary policy meetings in the first half of the year.

The loonie climbed to a 4-day high of 1.4990 against the euro and a 6-day high of 0.8979 against the aussie, off its early lows of 1.5084 and 0.9047, respectively. The currency is seen facing resistance around 1.46 against the euro and 0.86 against the aussie.

The loonie recovered to 1.4369 against the greenback, from an early 1-week low of 1.4420. The currency is poised to challenge resistance around the 1.35 level.

The loonie recovered against the yen and was trading at 108.12. The next possible resistance for the currency is seen around the 110.00 level.

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