The USD/CAD and NZD/USD currency pairs showed limited movement on Monday, trading sideways or slightly softening as markets anticipate a US Federal Reserve rate hike in September. According to FX Street, the USD/CAD hovered just below the mid-1.3800s during the early European session, while NZD/USD traded near 0.5875.
Investor expectations for a Fed rate increase have strengthened following stronger-than-expected US jobs data, yet Commerzbank’s Thu Lan Nguyen noted that the latest US labor report does not significantly shift the outlook. Instead, August US inflation figures remain the primary factor influencing the Fed's decision, as reported by FX Street.
For Japanese investors, these cautious moves in major currency pairs underscore the importance of closely monitoring US economic indicators, given their impact on global FX markets and Japanese export competitiveness.