USD/CAD remains above 1.4100 near six-month highs despite decreasing Fed rate cut odds

• USD/CAD maintains its position close to a six-month high of 1.4140, reached on Wednesday.
• The US Dollar lost ground after the Challenger Job Cuts report increased Fed rate cut bets.
• Canada's seasonally adjusted PMI slipped to 52.4, its sixth straight month remaining above the 50-point mark.

USD/CAD continues its winning streak that began on October 30, trading around 1.4120 during the Asian hours on Friday. The pair remains near the six-month high of 1.4140, reached on November 5, as the US Dollar (USD) rebounds after posting losses in the previous session.

Traders will likely observe the preliminary Michigan Consumer Sentiment Index data later in the day, while the US government shutdown is restricting official data releases like Nonfarm Payrolls (NFP) and Unemployment Rate. Canada's Net Change in Employment and Unemployment Rate will also be eyed.

The upside of the USD/CAD pair could be restrained as the US Dollar faced challenges, as the Challenger Job Cuts report prompted the Federal Reserve (Fed) to lower interest rates at its December meeting. Challenger, Grey & Christmas on Thursday, announced that companies cut over 153,000 jobs in October, marking the biggest reduction for the month in more than 20 years.

The Greenback could depreciate further as the US government shutdown extends further, hitting a record with still no solution in sight. The Senate is not currently set to vote on a House-passed measure to reopen the government on Thursday, after it failed to advance for the 14th time on Tuesday.

Canada's Ivey Purchasing Managers Index (PMI) declined to 51.7 in October, from 61.6 in September. Meanwhile, the seasonally-adjusted PMI fell to 52.4 from 59.8 prior, missing expectations of 55.2. The reading marks the sixth consecutive month above the 50-point threshold, signaling continued expansion in overall activity.

Bank of Canada (BoC) Governor Tiff Macklem told the House of Commons Standing Committee on Finance on Wednesday that federal budget measures aimed at improving Canada's productivity could deliver results if implemented effectively. "These things are pointing in the right direction, but it's going to come down to execution," he said. The budget, presented to Parliament on Tuesday, allocates billions of dollars for infrastructure, productivity, defense, and housing investments.