The USD remained stable against most major currencies except the Yen
PMI data will influence the market today
The BOC is expected to lower interest rates by 25 basis points
The US dollar is seen to still maintain a good trading performance compared to most major currencies except the Yen.
The yen maintained several sessions of strengthening against the US dollar supported by Japanese political officials regarding the normalization of monetary policy, increasing pressure on the central bank of Japan (BOJ) to raise interest rates further to support the yen's recovery.
The US dollar remained stable, but investors remain cautiously awaiting the latest indicators that will come this week through the United States (US) economic growth data and the PCE price index that will influence the direction of the central bank's monetary policy.
The Federal Reserve (Fed) is seen to be on track to implement policy easing following dovish signals from Chairman Jerome Powell last week who said the central bank does not need to wait until inflation falls to 2%.
Markets will know a clearer answer at next week's FOMC meeting.
Developments in other major currencies, the Euro and the Pound traded lower since the start of the week with the focus being on the release of manufacturing and services PMI data for Germany and the UK in the European session shortly.
The Canadian dollar is expected to be volatile in the New York session which will be driven by the reaction to the decision of the Bank of Canada (BOC) policy meeting.
The BOC is expected to further lower interest rates by 25 basis points to 4.25% after becoming the first central bank to begin easing the policy in June.
