• USD/CAD jumps above 1.3750 amid weakness in the Canadian Dollar ahead of Canada’s Employment data for September.
• The BoC is expected to cut interest rates further in the remainder of the year.
• The next move in the US Dollar will be influenced by the US PPI data for September.

The USD/CAD pair extends its winning spell for the eighth trading day on Friday. The Loonie pair strengthens and rises above 1.3750 amid sheer weakness in the Canadian Dollar (CAD). The Canadian currency exhibits weakness amid growing expectations that the Bank of Canada (BoC) will cut interest rates further in October.

The BoC has already reduced its borrowing rates by 75 basis points (bps) this year as price pressures have returned to the bank’s target of 2% and the labor market is weak. To get fresh insights of the current labor market status, investors will focus on the Employment data for September, which will be published at 12:30 GMT.

Economists expect the nation added 27K fresh workers, higher than 22.1K in August. The Unemployment Rate is estimated to have accelerated to 6.7% from the former print of 6.6%. Signs of a further slowdown in the labor demand could prompt expectations of a BoC 50 bps rate cut next month.

Meanwhile, the US Dollar (USD) edges higher ahead of the United States (US) Producer Price Index (PPI) data for September, which is scheduled at 12:30 GMT. The US Dollar Index (DXY), which gauges the Greenback’s value against six major currencies, trades close to 103.00.