US Dollar Slips vs. Canadian Dollar Amid Shutdown

The U.S. dollar slid to about C$1.3960 on Oct. 3, ending a three-day winning streak against the Canadian dollar. The decline was driven by a U.S. government shutdown that halted the release of September nonfarm payrolls and by a weak ADP private payrolls report (‑32,000) that boosted market expectations for two additional Federal Reserve rate cuts this year, weighing on the dollar. Falling crude oil ahead of an OPEC+ meeting could undermine the oil-linked Canadian dollar, creating competing forces for the USD/CAD pair. Despite the short-term weakness, the dollar has gained roughly 2.29% versus the Canadian dollar this quarter though it remains down year-to-date and below its 52-week high.