According to reports from Jin Shi Data, the chief foreign exchange strategist at Scotiabank has pointed out that there are increasing unfavorable factors for the Canadian dollar this week. Stock market volatility could become a resistance for the Canadian dollar, but the recent rise of the US dollar is unlikely to be sustained in the short term. The market still holds expectations for a recent interest rate cut by the Federal Reserve, and the fair value of USD/CAD has slightly risen to 1.3622.
The biggest risk facing the Canadian dollar this week is the US non-farm payroll data to be released on Friday. If the data is strong, it will reduce the likelihood of an interest rate cut by the Federal Reserve this month, putting pressure on the Canadian dollar.