Canadian Dollar Surges as US Data Disappoints

The USD/CAD pair has extended its losses for the third consecutive day, trading around 1.3870 during Asian hours on Monday.

This depreciation is largely due to a weaker-than-expected US economic data and shifting central bank expectations.

The US Census Bureau reported that Retail Sales fell by 0.6% month-over-month in July, below the market consensus of 0.1% growth.

Traders have reduced their bets on Federal Reserve rate hikes following softer US data, with markets now pricing in a 33.1% chance of a hike next month, down from 44% last week according to the CME FedWatch tool.