USD Holds Firm Against CAD as US Economy Continues to Resilience
The US Dollar (USD) remains strong against the Canadian Dollar (CAD), with the USD/CAD pair trading around 1.4240 at the time of writing on Thursday.
This stability comes as the US economy shows continued resilience, with the latest data pointing to a robust job market and inflationary pressures.
New applications for unemployment benefits fell to 197K in the week ending September 26, below the 201K initially expected, while the ADP report showed that the US private sector added 90K jobs in September, beating expectations of 70K.
The combination of these factors leaves the Federal Reserve with room to maintain a restrictive monetary policy stance, although expectations of further interest-rate hikes have eased following softer-than-expected core Personal Consumption Expenditures (PCE) inflation data.