USD/CAD heads for highest close in two months

• Spot back above 1.3000 but still under June highs.
• US Dollar gained momentum on rumors that Fed’s Powell wants a press conference after every FOMC meeting.

The USD/CAD rose back above 1.3000 and printed a fresh daily high at 1.3028. It was hovering around the day’s top headed toward the highest close since March 19.

The pair is up for the second day in a row on the back of the FOMC meeting. In 24 hours the Fed will announce its decision. A rate hike is widely expected. Recently, rumors that Jerome Powell wanted a press conference on every FOMC meeting boosted the greenback. Earlier today, US CPI data had no significant impact.

Regarding the “trade war” and the G7 meeting outcome, Canadian PM Trudeau declined to comment when he was asked whether he accepts White House adviser Pete Navarro’s apology for her remarks about “special place in hell”.

Technical outlook

USD/CAD continues to move with a modest bullish tone as it remains on top of the 20-day moving average that stands at 1.2910. A daily close below that area would open the doors for a slide to test June lows at 1.2855 and would remove the bullish momentum.

Despite the positive momentum for the US dollar, the pair continues to show some lack of strength for in order to break and hold on top of the 1.3000/40 area. If the USD/CAD manages to do so, it could rise further to test YTD highs at 1.3120/25.