USD Soars Against CAD on Fed Hike Expectations

The US Dollar has extended its rally against the Canadian Dollar, trading near 1.4190 as expectations of two additional Federal Reserve rate hikes this year lift the dollar's value.

Markets have priced in a 60% probability of a 0.25% move at each of the Fed's remaining policy meetings, with the US Dollar Index (DXY) up 0.16% to around 101.35.

The Canadian economy is also in focus, with the release of July GDP data expected later today, and economists anticipating flat output after a 0.3% gain in June.