USD/CAD Reclaims Seven-week High Near 1.3650 Amid Weak Canadian Dollar

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.The US inflation data is expected to influence market expectations for the Federal Reserve’s (Fed) interest rate outlook. Currently, financial market participants expect the Fed to reduce its key borrowing rates again in November but with a smaller rate cut of 25 basis points (bps).In Tuesday’s late Asian session, the comments from Fed Governor Adriana Kugler indicated that the policymaker sees more rate cuts as appropriate if price pressures continue to decline as expected.More By This Author:USD/CAD Jumps To Near 1.3600 As US NFP Beats Estimates EUR/USD Rises Towards 1.1200 Ahead Of ECB Lagarde, Fed Powell’s SpeechesEUR/USD Slides Below 1.1150 As Soft French, Spain Inflation Weighs On Euro