USD/CAD loses ground despite the hawkish Fed stance on interest rate trajectory.
WTI price strengthens as Israel has rejected Hamas' proposal for a ceasefire.
BoC projects that Canadian inflation will persist above 2% until sometime in 2025.
USD/CAD continues to move in a downward direction for the third straight day, edging lower to near 1.3450 during the Asian session on Thursday. The upbeat Crude oil prices are contributing support to strengthening the Canadian Dollar (CAD), which, in turn, acts as a headwind for the USD/CAD pair.
West Texas Intermediate (WTI) oil price hovers around $74.20 per barrel, at the time of writing. Crude oil prices are expected to maintain their upward trajectory, with a potential obstacle emerging in the process of a ceasefire in the Israel-Gaza conflict. Israeli Prime Minister Benjamin Netanyahu has rejected Hamas' proposal for a ceasefire and the release of hostages in the Gaza Strip.
However, US Secretary of State Antony Blinken has indicated the possibility of further negotiations to achieve a resolution. Additionally, a Hamas delegation, led by senior official Khalil Al-Hayya, is scheduled to travel to Cairo on Thursday for discussions with Egypt and Qatar aimed at reaching a ceasefire agreement.
The Bank of Canada (BoC) projections that Canadian inflation will persist above 2% until sometime in 2025. BoC underscored global economic challenges, highlighting the resilience of consumer spending in the United States (US) as a mitigating factor against downside risks.
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