FxWirePro: USD/CAD dips as dollar weakens on Fed independence worries

• USD/CAD dipped on Tuesday as U.S. dollar weakened following President Donald Trump’s unprecedented decision to fire Federal Reserve Governor Lisa Cook.

• In a letter, President Trump cited alleged mortgage loan improprieties as the reason for firing Fed Governor Lisa Cook. Cook responded, asserting that Trump has no authority to remove her from the central bank and that she will not resign.

•  The move renewed market concerns over the Fed’s independence, giving the loonie some support against the greenback.

• U.S. President Donald Trump has repeatedly criticized Fed Chair Jerome Powell for not cutting interest rates, though he has refrained from threatening to fire him, with less than nine months remaining in Powell’s term.

• Meanwhile ,markets showed little reaction after reports indicated that U.S.-manufactured capital goods rose more than expected last month, while consumer confidence slipped slightly in August..

• Immediate resistance is located at 1.3858(50%fib), any close above will push the pair towards 1.3935(Higher BB).

• Support is seen at 1.3814(SMA 20) and break below could take the pair towards 1.3721(38.2%fib).

Recommendation: Good to buy around 1.3800, with stop loss of 1.3730 and target price of 1.3860