USD/CAD remains firm above 1.4000 as attention turns to the Bank of Canada’s Q3 Business Outlook Survey. Markets will focus on firms’ hiring intentions, with BOC Governor Tiff Macklem having highlighted the softness in Canada’s labor market and firms’ caution toward expanding workforces, BBH FX analysts report.

Canadian labor market focus ahead of Q3 business outlook

"USD/CAD is firm above 1.4000 and will take its cue today from the Bank of Canada’s (BOC) Q3 Business Outlook Survey indicator (3:30pm London, 10:30am New York). Attention will be on firms’ hiring intentions given that BOC Governor Tiff Macklem called Canada’s labor market “soft” and warned that firms are “very cautious” about hiring."

"In Q2, hiring intentions remained subdued as fewer firms than usual planned to increase their labor force over the next year. The swaps curve implies 70% odds of a 25bps cut at the next October 29 meeting."