USD/CAD edges lower to 1.3575 in Monday’s Asian session.
The growing anticipation of larger Fed rate cuts weighs on the US Dollar.
BoC’s Macklem said he has opened the door to accelerating the pace of interest rate reductions.
The USD/CAD pair loses traction near 1.3575 during the Asian trading hours on Monday, pressured by a softer US Dollar (USD). The Federal Reserve (Fed) interest rate decision will take center stage on Wednesday. Investors will monitor how aggressively the US central bank will bring down interest rates.
Former New York Fed President William Dudley said on Friday that there’s scope for a half-point rate cut at the Fed’s meeting on Wednesday as FOMC members attempt to maneuver a "soft landing" of the economy. The rising anticipation of steeper Fed rate cuts exerts some selling pressure on the Greenback. The CME FedWatch Tool showed the markets have priced in nearly 49% probability of a Fed deeper rate cut, a significant jump from a 28% chance one day prior.
Elsewhere, data released by the University of Michigan on Friday showed that the Consumer Sentiment Index rose to 69.0 in September versus 67.9 prior. This figure came in above the market consensus of 68.0.
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