Forex
Home›Forex›Major Pairs›USD/CAD slips for second straight day near 1.3800
USD/CAD slips for second straight day near 1.3800
The move comes as September Fed hike odds top 60% after August payrolls, while CAD strengthens on crude holding near $90.5 a barrel.
USD/CAD extended losses for a second straight day in Asian trading, hovering around 1.3800, as the US dollar weakened despite rising expectations for a Federal Reserve rate hike in September, according to FXStreet. HSBC cautioned that even with improved sentiment around the Fed’s anti inflation stance, broader structural concerns, particularly US fiscal sustainability, could continue to weigh on the dollar. The latest shift is tied to a stronger than expected August US jobs report. Nonfarm payrolls added 162,000 jobs while the unemployment rate stayed steady, pushing Fed hike odds above 60%, with investors looking ahead to upcoming US producer and consumer price inflation releases. Downward pressure on USD/CAD also reflects strength in the Canadian dollar, supported by higher crude oil prices. West Texas Intermediate was near three month highs around $90.50 per barrel, after crude surged nearly 10% last week amid heightened Middle East tensions, including increased military activity near the Strait of Hormuz and an attack on Saudi Aramco facilities. FXStreet said CAD is influenced by Bank of Canada interest rate settings, oil prices, Canada’s economic health, inflation, and the trade balance, with risk sentiment also playing a role.
Latest closeWTI crude $90.70 ▲0.5%