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The USD/CAD pair holds onto gains near 1.3550 in Monday’s North American session. The Loonie asset trades in a tight range as sheer strength in the US Dollar (USD) has cushioned the downside, while the upside remains restricted by the firm Canadian Dollar (CAD)The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, surges to 101.60. The Greenback strengthens after the release of the better-than-feared Friday’s United States (US) Nonfarm Payrolls (NFP) report for August.The report showed that fresh payrolls were fewer-than-estimated, the Unemployment Rate fell expectedly, and the wage growth accelerated at a faster-than-expected pace. Though fresh payrolls came in lower than expected, they were significantly higher than July’s reading, which then prompted recession fears.Better-than-feared US NFP report has forced traders to pare bets supporting large interest rate cuts from the Federal Reserve (Fed) this month.This week, investors will focus on the US Consumer Price Index (CPI) data for August, which will influence market speculation for the Fed’s likely interest rate cut size. Investors see the annual headline inflation decelerating to 2.6% from the prior release of 2.9%, with core inflation-which excludes volatile food and energy prices, growing steadily by 3.2%.Meanwhile, the Canadian Dollar exhibits strength despite the Bank of Canada (BoC) is expected to soften its interest rate policy further. Market speculation for the BoC extending its policy-easing cycle further in October as the Unemployment Rate increased at a faster pace to 6.6% in August from the estimates of 6.5% and July’s release of 6.4%.Going forward, investors will focus on BoC Governor Tiff Macklem’s speech, which is scheduled for Tuesday. Tiff Macklem will guide about the likely monetary policy action for the remainder of this year.More By This Author:EUR/USD Falls Sharply As Diminished Fed Large Rate Cut Bets Boost US Dollar USD/CAD Bounces Back Strongly To Near 1.3500 After US/Canada Employment Release AUD/USD Trades Sideways Above 0.6700 Ahead Of US Data
