USD/CAD revisits 1.3650 as the Canadian Dollar weakens amid uncertainty ahead of the employment data for September.
The BoC is expected to extend its rate-cut cycle in November.
Fed Kugler sees more rate cuts as appropriate.
The USD/CAD pair recaptures a seven-week high near 1.3650 in Tuesday’s European session. The Loonie asset strengthens amid weakness across the Canadian Dollar’s (CAD) performance ahead of Canada’s Employment data for September, which will be published on Friday.
The Canadian job report is expected to show that the economy added 28K workers, higher than 22.1K in August. In the same period, economists expect the Unemployment Rate to have risen further to 6.7%. Signs of further deterioration in labor market conditions would prompt speculation for more Bank of Canada (BoC) interest rate cuts. This year, the BoC has already reduced its interest rates by 75 basis points (bps) to 4.25% as inflation has returned to the bank’s target of 2% and the economic outlook is vulnerable.
Meanwhile, the US Dollar (USD) struggles to extend its upside as investors shift focus to the United States (US) Consumer Price Index (CPI) data for September, which will be published on Thursday. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, clings to gains near 102.50.
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