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USD/CAD holds near 1.4280 as oil slips and Fed hike odds cool

US nonfarm payrolls rose 29K in September, below expectations, trimming the perceived probability of a Fed rate hike to 22.1% for October.

Reported · Written up by our desk · Major Pairs

The USD/CAD pair strengthened to around 1.4280 in early European trading on Monday, supported by movement in the US dollar and pressure on the commodity-linked Canadian dollar, according to FXStreet.

FXStreet attributed the Canadian dollar drag to falling oil prices, citing rising crude exports from the Middle East and G7 oil releases that increase supply.

FXStreet also pointed to softer US jobs data that reduced expectations for an October Federal Reserve rate hike. US nonfarm payrolls rose by 29K in September versus 133K in August, with the September figure coming in below the 90K market expectation.

FXStreet added that traders now see about a 22.1% probability of a US rate hike this month, down from roughly 70% earlier in the week, based on the CME FedWatch Tool.

Latest closeWTI crude $91.26 ▼1.7%

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