- USD/CAD grips gains near 1.3550 amid US Dollar’s strength.
- Better-than-feared US NFP report boosts the US Dollar.
- Investors await the US inflation and BoC Macklem’s speech.
The USD/CAD pair holds onto gains near 1.3550 in Monday’s North American session. The Loonie asset trades in a tight range as sheer strength in the US Dollar (USD) has cushioned the downside, while the upside remains restricted by the firm Canadian Dollar (CAD)
The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, surges to 101.60. The Greenback strengthens after the release of the better-than-feared Friday’s United States (US) Nonfarm Payrolls (NFP) report for August.
The report showed that fresh payrolls were fewer-than-estimated, the Unemployment Rate fell expectedly, and the wage growth accelerated at a faster-than-expected pace. Though fresh payrolls came in lower than expected, they were significantly higher than July’s reading, which then prompted recession fears.
Better-than-feared US NFP report has forced traders to pare bets supporting large interest rate cuts from the Federal Reserve (Fed) this month.
This week, investors will focus on the US Consumer Price Index (CPI) data for August, which will influence market speculation for the Fed’s likely interest rate cut size. Investors see the annual headline inflation decelerating to 2.6% from the prior release of 2.9%, with core inflation-which excludes volatile food and energy prices, growing steadily by 3.2%.
Meanwhile, the Canadian Dollar exhibits strength despite the Bank of Canada (BoC) is expected to soften its interest rate policy further. Market speculation for the BoC extending its policy-easing cycle further in October as the Unemployment Rate increased at a faster pace to 6.6% in August from the estimates of 6.5% and July’s release of 6.4%.
Going forward, investors will focus on BoC Governor Tiff Macklem’s speech, which is scheduled for Tuesday. Tiff Macklem will guide about the likely monetary policy action for the remainder of this year.
Economic Indicator
BoC's Governor Macklem speech
Tiff Macklem was appointed Governor of the Bank of Canada, effective 3 June 2020. As Governor, he is also Chairman of the Board of Directors of the Bank. Prior to being appointed as BoC chief, Macklem served as the Dean of the Rotman School of Management at the University of Toronto for six years. He had already served as Senior Deputy Governor of the Bank of Canada from July 2010 until May 2014. Macklem also was the first Chair of the Financial Stability Board’s Standing Committee for Standards Implementation from 2009 to 2013, and represented the Bank of Canada at the FSB.
Read more.Next release: Tue Sep 10, 2024 12:25
Frequency: Irregular
Consensus: -
Previous: -
Source: Bank of Canada
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
![AUD/USD hovers around 0.6670, trades on sentiment](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/AUDUSD/macro-of-aussie-20-note-8668638_XtraSmall.jpg)
AUD/USD hovers around 0.6670, trades on sentiment
The Australian Dollar trimmed losses against its American rival, as US indexes trimmed inflation-inspired losses. Australian Consumer Inflation Expectations stand out in the Asian session.
![EUR/USD remains depressed near 1.1020](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/EURUSD/money-euro-and-dollar-banknotes-17371247_XtraSmall.jpg)
EUR/USD remains depressed near 1.1020
The EUR/USD pair flirted with the 1.1000 level after US inflation data cooled hopes for an aggressive Federal Reserve rate cut. The European Central Bank will announce its decision on monetary policy on Thursday.
![Gold reconquered $2,510, aims to retest record highs](https://editorial.fxstreet.com/images/Markets/Commodities/Metals/Gold/safe-investment-gm147322399-17568598_XtraSmall.jpg)
Gold reconquered $2,510, aims to retest record highs
Gold touches the top of its range and then falls back down to $2,500 after the release of US inflation data on Wednesday. The benchmark 10-year US Treasury bond yield rebounds on stronger-than-forecast monthly core CPI print and drags XAU/USD lower.
![XRP corrects 3% after Ripple CTO says Ledger does not have smart contract functionality](https://editorial.fxstreet.com/images/Markets/Currencies/Cryptocurrencies/Coins/Ripple/ripple_XtraSmall.jpg)
XRP corrects 3% after Ripple CTO says Ledger does not have smart contract functionality
Ripple (XRP) has plans to introduce smart contract functionality to its native blockchain, the XRP Ledger. However, as of September 11 the firm has not announced a date for its launch on the mainnet.
![Five Fundamentals for the week: Jittery markets fear the ECB, US inflation and more](https://editorial.fxstreet.com/images/Macroeconomics/EconomicIndicator/Prices/CPI/consumer-price-index-gm500080630-80587217_XtraSmall.jpg)
Five Fundamentals for the week: Jittery markets fear the ECB, US inflation and more Premium
Is there still a chance? Investors hope for a 50-bps rate cut from the Fed but also fear a global recession is underway. The world's three largest economies, the US, China, and the eurozone, are set to rock global markets.
![Moneta Markets review 2024: All you need to know](https://editorial.fxstreet.com/images/IT/Testing/Review/FXSBadgeCertifiedBackg_XtraSmall.png)
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.