{
  "id": 9770459,
  "title": "Canadian Dollar set for second weekly decline despite pullback in US Dollar",
  "url": "https://urgent.news/2026/09/25/canadian-dollar-set-for-second-weekly-decline-despite-pullback-in-us",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-25T13:31:17.000Z",
  "source": {
    "name": "FXStreet",
    "slug": "fxstreet",
    "url": "https://www.fxstreet.com/news/canadian-dollar-set-for-second-weekly-decline-despite-pullback-in-us-dollar-202609251331"
  },
  "original_language": "en",
  "account": "The Canadian Dollar (CAD) slipped for a second consecutive week despite a dip in the US Dollar (USD), as traders focus on interest rate differentials and economic growth outlooks. The USD/CAD pair is currently trading around 1.4141, near levels last seen in mid-July. While the CAD struggles to gain from a weaker USD, the Federal Reserve (Fed) and Bank of Canada (BoC) have divergent policy directions. The Fed raised interest rates by 25 basis points (bps) to 3.75%-4.00%, with potential for further hikes this year, while the BoC maintained its policy rate at 2.25% and expressed cautious optimism over energy price inflation. This policy gap and expectations of additional Fed rate increases have widened the yield differential in favor of the USD. The US Dollar Index (DXY) is trading around 101, up from 101.40 on Thursday. Canada's two-year government bond yield is near 3.35%, creating a nearly 150 basis points yield gap in favor of the USD. Despite elevated oil prices, market focus remains on interest rate differentials, stronger US growth prospects, higher US yields and potential US tariffs impacting Canadian activity. Bank of Canada Governor Tiff Macklem cautioned that tariffs could lead to Canadian fourth-quarter growth below 1%. Next week's market focus will be on US Personal Consumption Expenditures (PCE) inflation report, ISM Manufacturing PMI, Nonfarm Payrolls (NFP) report and Canada's July GDP data.",
  "summary": "USD/CAD trades little changed on Friday as the US Dollar (USD) pulls back slightly after a strong rally this week. The pause in the Greenback and Treasury yields has offered little relief to the Canadian Dollar (CAD), leaving it on track for a second consecutive weekly decline.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 3,
    "also_reported_by": [
      {
        "outlet": "FXStreet",
        "title": "Gold gains as US Dollar and yields pause, but weekly loss remains in sight",
        "url": "https://urgent.news/2026/09/25/gold-gains-as-us-dollar-and-yields-pause-but-weekly-loss-remains-in",
        "published": "2026-09-25T11:06:53.000Z"
      },
      {
        "outlet": "New Straits Times",
        "title": "Dollar falls as oil cools but set for weekly gain, yen rallies",
        "url": "https://urgent.news/2026/09/25/dollar-falls-as-oil-cools-but-set-for-weekly-gain-yen-rallies",
        "published": "2026-09-25T12:08:26.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}