The Canadian Dollar (CAD) underperforms its major currency peers on Friday. The North American currency faces selling pressure as Oil prices have retreated sharply after posting a fresh four-month high.
USD/CAD remains subdued for the third successive day, trading around 1.3780 during the Asian hours on Wednesday. The currency pair loses ground as the commodity-linked Canadian Dollar (CAD) draws support from elevated oil prices, given Canada's position as one of the world's leading crude exporters.
Royal Bank of Canada (RBC) economist Claire Fan notes Canada’s labour market lost 42,000 jobs in August, partly reversing earlier gains and leaving modest year-to-date job growth. She emphasizes structural factors like demographics and weaker immigration as key drags.