{"id":118014,"date":"2025-08-22T20:19:00","date_gmt":"2025-08-22T16:19:00","guid":{"rendered":"https:\/\/noortrends.ae\/en\/?p=118014"},"modified":"2025-08-22T21:41:19","modified_gmt":"2025-08-22T17:41:19","slug":"loonie-soars-as-powell-turns-dovish-usd-cad-slides-below-1-3840","status":"publish","type":"post","link":"https:\/\/noortrends.ae\/en\/loonie-soars-as-powell-turns-dovish-usd-cad-slides-below-1-3840\/08\/22\/market-updates\/","title":{"rendered":"Loonie Soars as Powell Turns Dovish: USD\/CAD Slides Below 1.3840"},"content":{"rendered":"The Canadian dollar gained ground on Friday, sending USD\/CAD lower by nearly half a percent, as dovish signals from Federal Reserve Chair Jerome Powell and upbeat Canadian retail sales data combined to pressure the greenback. The pair slipped 0.49% to 1.3835 in North American trading, retreating from an earlier daily high of 1.3924.<br \/><br \/>Powell\u2019s Caution Fuels Rate Cut Bets<br \/><br \/>Speaking at the highly anticipated Jackson Hole Symposium, Powell acknowledged the Federal Reserve\u2019s delicate balancing act, noting that \u201crisks to inflation are tilted to the upside, and risks to employment to the downside\u2014a challenging situation.\u201d While reiterating the Fed\u2019s commitment to its dual mandate, he highlighted rising downside risks for the labor market and suggested that evolving conditions could justify a shift in policy stance.<br \/><br \/>Markets responded swiftly. Traders are now fully pricing in 50 basis points of easing by the end of 2025, with the probability of a September rate cut climbing from 75% to 90%. Powell stressed that the relative stability in unemployment figures still allows the Fed to \u201cproceed carefully,\u201d but investors clearly leaned toward a more accommodative outlook.<br \/><br \/>Canada\u2019s Retail Data Strengthens the Loonie<br \/><br \/>The Canadian dollar found additional support from stronger-than-expected retail sales figures. June retail sales jumped 1.5% month-over-month, bouncing back sharply after a 1.2% contraction in May. Excluding autos, sales surged 1.9%, far exceeding the 1.1% forecast. The upbeat data reinforced the narrative of a resilient Canadian consumer, further bolstering the Loonie against its U.S. counterpart.","protected":false},"excerpt":{"rendered":"<p>The Canadian dollar gained ground on Friday, sending USD\/CAD lower by nearly half a percent, as dovish signals from Federal Reserve Chair Jerome Powell and upbeat Canadian retail sales data combined to pressure the greenback. The pair slipped 0.49% to 1.3835 in North American trading, retreating from an earlier daily high of 1.3924.Powell\u2019s Caution Fuels &hellip;<\/p>\n","protected":false},"author":13,"featured_media":104102,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[37,36],"tags":[],"class_list":["post-118014","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-forex-markets","category-market-updates"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/118014","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=118014"}],"version-history":[{"count":1,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/118014\/revisions"}],"predecessor-version":[{"id":118017,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/118014\/revisions\/118017"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/104102"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=118014"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=118014"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=118014"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}