The USD/CAD remains strong above 1.4200. Traders are waiting for inflation data from the U.S. It seems that the Bank of Canada might cut rates soon. This puts pressure on the Canadian dollar.



Canada lost many jobs in September. More than expected. Unemployment rose to 7.3%. Bad sign for the loonie.

It is believed that the BoC will lower rates in October. Maybe 25 basis points. And perhaps it will not be the last time this year.

An analyst said: "The market is preparing for a cut." But it is unclear whether this will be enough to move the market much.

Today the U.S. inflation report is being released. It could show a 3.1% annual rate. If it is lower, the USD could drop a bit.

With 500 USD you can get about 710 CAD. Traders will be attentive to the news. The pair could move in the coming weeks.
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