Macklem opens the door to lower rates – DBS

Other central banks have weighed in on potential USD weakness following the Fed’s rate cut recommendations, notes DBS FX strategist Philip Wee.

The depreciation remains below 1.36

“Over the weekend, Bank of Canada Governor Tiff Macklem opened the door to a 50bps rate cut, citing a weaker labor market and lower oil prices.”

“Despite the recovery in USD/CAD from 1.3440 over the past two weeks, a bearish trend remains below 1.36.”