USD/CAD Momentum Cools as Dovish Fed Tone Weighs on Dollar
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The same dovish FOMC minutes that triggered a notable breakout in EUR/USD are also bleeding into USD/CAD, where dollar momentum against the loonie has visibly cooled over recent sessions.
With upside attempts struggling to hold, the pair appears to be consolidating near shorter-term support as traders wait for the PCE inflation report to confirm whether the broader dollar downtrend has legs or whether a corrective bounce is due.
Momentum indicators tracking the pair have flattened, reflecting hesitation on both sides. A clear break beyond recent trading ranges, likely triggered by Wednesday's data, should dictate whether USD/CAD resumes its slide or stages a near-term recovery.