- USD/CAD appreciates as the US dollar remains steady despite President Trump’s decision to fire a key official.
- Fed’s Cook is moving forward with a lawsuit in response to her dismissal.
- Investors are on alert for upcoming US trade discussions and Canada’s GDP figures.
In late trading on Wednesday in Asia, the USD/CAD pair is expected to climb to about 1.3850. The pair sees a slight increase as the US dollar is nudged higher, with the US Dollar Index (DXY) rising to nearly 98.35.
That said, the outlook for the US dollar is facing challenges. Analysts question the dollar’s sustainability considering the uncertain decisions from US financial entities going forward.
Doubts regarding the dependability of US institutions, particularly the Federal Reserve, have heightened following President Trump’s firing of Governor Lisa Cook in light of mortgage-related issues.
In response, Cook has chosen to file a lawsuit against her termination, aiming to safeguard her position. Her lawyer stated that the grounds for her firing lack factual support. “The allegation of her dismissal based solely on referrals has no legal basis. We plan to challenge this unlawful act,” noted Washington State Attorney Abbe Lowell, as reported by Reuters.
Meanwhile, investors appear cautious with the Canadian dollar, awaiting the outcome of trade negotiations between Canada and the US.
Earlier this week, Canadian Minister Dominique LeBlanc traveled to Washington to meet with U.S. Secretary of Commerce Howard Lutnick to negotiate trade terms.
LeBlanc expressed optimism in statements made in Canada, saying, “We’re looking forward to a deal that improves our situation.” He made these comments during a French radio interview on Monday.
Domestically, investors are keenly watching for the GDP data for June and the second quarter, which is set to be announced on Friday.
