In relation to the CAD, the US dollar declined from highs over 1.3900 but is still stable at 1.3885.
As they anticipate further Fed speeches and US GDP statistics, investors have remained cautious on Thursday.
The release of the PCE Prices index, the Fed's preferred inflation indicator, on Friday marks the week's high point.
On Thursday, the US dollar has been trading in a small range close to the 1.3900 mark, with efforts to decline being halted at 1.3885. Bears of the US dollar are now being restrained by the cautious market sentiment in the face of persistent geopolitical threats and the Fed's less than dovish language.
Now, all eyes will be on the US second quarter GDP final estimate, which should show a recovery to 3.3% annualized growth following the 0.5% loss observed in the first three months of the year.
Additional hints on the central bank's monetary policy plans may be revealed by a subsequent group of Fed speakers. The week's high point, however, will be Friday's Personal Consumption Expenditures (PCE) Price Index, which will be closely watched for additional proof of Trump's tariffs' inflationary effects.
Mary Daly, the president of the San Francisco Fed, said on Wednesday that the bank will need to further loosen its monetary policy. However, she cautioned that the next rate decrease may not happen right away since the bank must balance its two missions, which are to maintain low inflation and promote employment.
Although Canada's economic agenda has been light this week, Tiff Macklem, the governor of the Bank of Canada, identified changes in international trade and financial flows as the primary risks to the country's economy and cautioned that the trade tensions with the US will cause inflation to rise.
As they anticipate further Fed speeches and US GDP statistics, investors have remained cautious on Thursday.
The release of the PCE Prices index, the Fed's preferred inflation indicator, on Friday marks the week's high point.
On Thursday, the US dollar has been trading in a small range close to the 1.3900 mark, with efforts to decline being halted at 1.3885. Bears of the US dollar are now being restrained by the cautious market sentiment in the face of persistent geopolitical threats and the Fed's less than dovish language.
Now, all eyes will be on the US second quarter GDP final estimate, which should show a recovery to 3.3% annualized growth following the 0.5% loss observed in the first three months of the year.
Additional hints on the central bank's monetary policy plans may be revealed by a subsequent group of Fed speakers. The week's high point, however, will be Friday's Personal Consumption Expenditures (PCE) Price Index, which will be closely watched for additional proof of Trump's tariffs' inflationary effects.
Mary Daly, the president of the San Francisco Fed, said on Wednesday that the bank will need to further loosen its monetary policy. However, she cautioned that the next rate decrease may not happen right away since the bank must balance its two missions, which are to maintain low inflation and promote employment.
Although Canada's economic agenda has been light this week, Tiff Macklem, the governor of the Bank of Canada, identified changes in international trade and financial flows as the primary risks to the country's economy and cautioned that the trade tensions with the US will cause inflation to rise.
