USD/CAD hovers near 1.3750. Inflation risks loom. Fed policy? Uncertain. The Greenback's gaining steam. Friday's US PCE Price Index showed stubborn inflationary pressures.



But hold on. USD/CAD might not soar. Why? Fed rate cut buzz is growing. CME FedWatch says 89% chance of a September cut. Up from 84% last week. Interesting shift.

This week's job data could be huge. ADP numbers, hourly earnings, August Nonfarm Payrolls. They'll shape the Fed's thinking. Traders are on edge.

The Loonie's not having a great time. Canada's economy? Kind of shaky. Q2 saw a 0.4% contraction. Exports and business investment took a hit. Markets are eyeing earlier Bank of Canada easing. Seems like a trend.

Canada's slowdown? Worse than expected. US trade tensions aren't helping. Those tariffs are a pain. It's all adding to the USD/CAD puzzle.

What's next? Hard to say. Inflation, policy moves, economic data - they're all in the mix. The USD/CAD story's far from over. Keep your eyes peeled. Central banks might drop some hints.
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