Ella 
USD/CAD recovered recent losses in Asia on Monday and is trading around 1.3500. USD/CAD gained on weakness in the commodity-linked Canadian dollar (CAD) following a drop in crude oil prices. Canada is the largest oil exporter to the United States.
West Texas Intermediate (WTI) oil prices fell for a second consecutive session, with WTI trading at $72.50 at press time. This drop may be related to plans by the Organization of the Petroleum Exporting Countries and its allies (OPEC+) to increase production next quarter.
Reuters quoted six sources as saying that the OPEC+ organization is preparing to advance its oil production increase plan starting in October. The eight OPEC+ members will increase production by 180,000 barrels per day next month as part of a strategy to begin unwinding recent production cuts of 2.2 million barrels per day, while maintaining other production cuts until the end of 2025.
The U.S. dollar (USD) found support as July’s U.S. PCE price index led traders to scale back expectations for an aggressive interest rate cut by the Federal Reserve in September. The CME Fed Watch Tool shows that the market fully expects the Fed to cut interest rates by at least 25 basis points at its September meeting.
Traders are now likely to focus on upcoming U.S. employment data, including August’s non-farm payrolls (NFP), for further insight into the potential magnitude and pace of rate cuts from the Federal Reserve. In the Canadian dollar, the focus on Tuesday will be the S&P Global Manufacturing Purchasing Managers Index.
