FxWirePro: USD/CAD dips as greenback weakness on Fed independence concerns

• USD/CAD dipped on Monday as dollar weakened after a Trump administration probe into U.S. Federal Reserve Chair Jerome Powell sparked concerns.

•On Sunday, Powell said the Fed was served with subpoenas from the Justice Department over remarks he made to Congress last summer about cost overruns for a $2.5 billion renovation of its Washington headquarters.

• Trump is expected to name a more dovish Fed chair when Powell’s term expires in May, even as Powell may stay on the Board of Governors.

• Canada’s jobs data delivered mixed signals on Friday, leaving expectations for the Bank of Canada’s policy outlook largely unchanged, with markets still pricing rates at 2.25% in 2026..

• Markets will look for further signals from housing and manufacturing data due this week, as well as from Prime Minister Mark Carney’s trip to China.

•  Immediate resistance is located at 1.3920(50%fib), any close above will push the pair towards 1.3936(Higher BB).

• Support is seen at 1.3812(38.2%fib) and break below could take the pair towards 1.3770(SMA20).

Recommendation: Good to sell around 1.3900, with stop loss of 1.3980 and target price of 1.3820