USD/CAD falls further to near 1.3730 as Fed officials support interest rate cuts this year

• USD/CAD slides further to near 1.3730, extending losing streak for the third trading day on Thursday.
• A dovish monetary policy guidance from a few Fed officials has weighed on the US Dollar.
• Investors await the Canadian labor market data for July.

The USD/CAD pair extends its downside move to near 1.3730 during the late Asian trading session on Thursday. The Loonie pair faces selling pressure as the US Dollar (USD) underperforms its peers, following support from a slew of Federal Reserve (Fed) officials toward lowering interest rates in the remainder of the year.

At the time of writing, the US Dollar Index (DXY), which tracks the Greenback's value against six major currencies, trades weakly near Wednesday's low around 98.20.

An array of Fed members, including Minneapolis Fed President Neel Kashkari, San Francisco Fed President Mary Daly and Fed Governor Lisa Cook, stated on Wednesday that monetary policy adjustments have become appropriate amid growing labor market concerns.

Meanwhile, investors await the announcement of Fed Governor Adriana Kugler's replacement, who resigned on Friday.  On Wednesday, US President Donald Trump stated that his team has started the interview process, while speaking to reporters, and they have narrowed scope of potential candidates to three.

In Canada, investors await the labor market data for July, which is scheduled to be released on Friday. The report is expected to show that the economy added 13.5K fresh workers, lower than 83.1K in June. The Unemployment Rate is seen higher at 7.0% from the prior reading of 6.9%.

Signs of cooling labor market conditions would prompt traders to raise bets supporting the resumption of monetary policy expansion by the Bank of Canada (BoC). The BoC has held interest rates steady at 2.75% in its last three monetary policy meetings.