USD/CAD remains below 1.3750 due dovish Fedspeaks, US Initial Jobless Claims eyed

• USD/CAD depreciates ahead of the US weekly Initial Jobless Claims release due on Thursday.
• The US Dollar struggles as Fed officials indicated that monetary policy adjustments have become appropriate amid rising employment concerns.
• Markets will be watching Canada's Ivey Purchasing Managers Index later in the day, ahead of Friday's labor market report.

USD/CAD extends its losing streak for the fifth successive day, trading around 1.3740 during the European hours on Thursday. The pair depreciates as the US Dollar (USD) extends its gains ahead of the US weekly Initial Jobless Claims release due later in the North American session.

The US Dollar Index (DXY), which measures the value of the US Dollar against six major currencies, is extending its losses for the second consecutive day and trading around 98.10 at the time of writing. Last week's weaker-than-expected employment report reinforced expectations for a rate cut in September, with another possible in December.

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.

Market sentiment remains cautious after US President Donald Trump announced on Tuesday that he will appoint the Fed's Chair and Kugler's replacement by the end of the week. Trump is considering White House economic adviser Kevin Hassett, former Fed Governor Kevin Warsh, and two other candidates for the Fed's highest post. He confirmed that Treasury Secretary Scott Bessent is not his choice for the Fed's Chair.

In Canada, Ivey Purchasing Managers Index (PMI) data for July will be eyed later in the day. Focus will turn toward the labor market data, which is scheduled to be released on Friday. Signs of a cooling labor market would likely lead traders to increase bets on the Bank of Canada (BoC) resuming monetary policy easing.