The US dollar paused its recent slide against the Canadian dollar on Wednesday, with losses capped just above the 1.4000 mark after dropping 0.7% over the previous three sessions. Attempts to climb back have stalled below 1.4020.
Overall market volatility remains muted as investors hold back riskier positions ahead of a critical US congressional vote to end the government shutdown. Passage of the funding bill would release a backlog of economic reports, offering fresh insight into the US outlook and the Federal Reserve’s policy path.
Stronger-than-expected Canadian jobs data and hawkish comments from the Bank of Canada have dampened expectations for near-term rate cuts, supporting the loonie. A rebound in oil prices has further weighed on the greenback.
In the US, disappointing private-sector payroll figures on Tuesday intensified concerns over labor-market weakness, reinforcing wagers on a Fed rate cut in December. Comments from Fed officials later today will be watched closely for clues on monetary policy.
In Canada, all eyes will be on the Bank of Canada’s Summary of Governing Council Opinions for any hints on future interest-rate moves.
