FXStreet reports that Kit Juckes, Chief Global FX Strategist at Société Générale, notes that CAD needs relative rates to stop moving against it and Canadian jobs data suggest that could happen.

“Today’s most interesting economic release is the Canada jobs report for August, where the consensus expects a 67.5K increase in employment and a drop in unemployment from 7.5% to 7.3%. It would take the economy to within 250K of pre-pandemic employment.”

“A meaningful CAD rally may be impossible in the middle of an election campaign, but if the data were to surprise on the upside, and change the market’s views around BoC rate hikes a bit, we could see USD/CAD run out of upward momentum and set up a Q4 drift lower.”