Asian market trading is subdued today, with Dollar retreating as its recent rally began to lose steam. Notably, overnight remarks from Fed officials didn't provide any fresh cues, reinforcing expectations of a pause in rate hike this month. However, the door remains open for a subsequent rate hike, contingent on incoming data. All eyes now turn to the forthcoming CPI release next week, which could steer the greenback towards its next significant move.
Canadian Dollar is having a notable uplift in early US session, propelled by stronger than expected employment data that underscores a persistently robust and tight labor market scenario in the country. The revelations from the data could potentially pose hurdles in the path of Canada's disinflation journey, a process which, according to BoC governor Tiff Macklem, has already slowed. Despite BoC's decision to maintain rates unchanged earlier this week, the potential for future hikes remains, especially if the tight labor market persists and threatens the disinflation progress.