Canadian Dollar Rebounds from 4-Month Lows

2025-09-29 16:53 By Felipe Alarcon 1 min. read

The Canadian dollar rebounded toward 1.39 per US dollar because a softer US dollar after the August PCE print and firmer domestic activity reduced both external and domestic pressure on the loonie.

The US August PCE came in line with forecasts which added to expectations for continued easing by the US Fed, stripping support for the greenback.

Domestically, Statistics Canada revised July GDP up to a 0.2% monthly gain and reported that August activity was essentially unchanged which softened worries that Canada’s economy was rolling over and shifted market focus back to growth data.

The Bank of Canada’s 25 bp cut to 2.5% on September 17th was widely anticipated so there was no surprise driven outflow.



News Stream
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