USD/CAD remains pinned below 1.3800 with hopes of Fed cuts limiting upside attempts

• The Canadian Dollar holds Friday's gains as US recovery attempts remain limited.
• Concerns about the strength of the US economy and rising bets of Fed cuts keep the US Dollar pinned near lows.
• In Canada, IVEY PMI and employment figures due later this week will give fundamental guidance to the CAD.

The Canadian Dollar keeps most of the ground it gained on Friday as the US Dollar Index fell about 0.8% as US employment data revealed that job growth increased much less than expected, and data from previous months was revised sharply lower.

July's US Nonfarm Payrolls report crushed the view of a resilient US economy that served as one of the main fundamental supports for the Fed's "patience" rhetoric and boosted investors' expectations of monetary easing in the coming months.

Further pressure on the Fed to cut interest rates

Beyond that, the US President Trump fired a leading official of the Bureau of Labour Statistics, accusing her of rigging data, only to add to the market turmoil and increase pressure on an already weak Greenback.

Also on Friday, US Fed Governour, Adriana Kugler, a hawk, announced her resignation from August 8, and provided the US president a golden opportunity to provide additional support to the committee's dovish party.
economy

In Canada, the BoC kept interest rates on hold last week, citing the resilient economy and the threat from the hefty tariffs announced by its southern neighbour, but the negative GDP data released the day after the decision added some pressure on the Canadian Dollar. 

The lower Crude prices are not helping to improve the outlook of the Canadian economy, and investors fear an outlook of high inflation and soft economic growth that would pose a headache for the Bank of Canada. In this context, Canadian IVEY PMI and employment data, due later this week, will be observed with particular attention and might help to determine the Loonie's near-term direction.