The USD/CAD exchange rate remains steady above 1.3850 following the Federal Reserve’s recent rate cut. The Fed reduced its benchmark interest rate by 25 basis points to 4.75%, aiming to support economic growth amid global uncertainties. This decision has bolstered the U.S. dollar, maintaining its strength against the Canadian dollar.
Market participants are now focusing on the upcoming Canadian employment report, scheduled for release on November 8, 2024. Analysts anticipate that the data will provide insights into Canada’s labor market health and influence the Bank of Canada’s monetary policy decisions. A robust employment report could strengthen the Canadian dollar, potentially impacting the USD/CAD pair. Conversely, weaker employment figures may exert downward pressure on the loonie.
Investors are advised to monitor these developments closely, as they could significantly affect currency markets and inform future trading strategies.
