According to the latest analysis from the financial sector, the trade relationship between Canada and the United States remains tense, which may prompt the Central Bank of Canada to implement interest rate cuts in September of this year. This expectation has raised concerns in the market regarding the future trend of the Canadian dollar.

Recently, the exchange rate of the US dollar against the Canadian dollar has surpassed the 1.3780 mark, significantly rising from the low of 1.3600 in late July. Some financial institutions predict that the US dollar may continue to strengthen this quarter, with the potential to challenge the key level of 1.3900.

The latest market survey results from the Bank of Canada show that financial institutions generally expect at least two rate cuts by 2025. The recently released employment data fell short of expectations, further increasing the likelihood of a rate cut in September, while also reflecting potential overcapacity issues in the Canadian economy.

Under the combined effect of these factors, the Canadian dollar may face further depreciation risks in the coming weeks. With the continuous release of economic data and the evolution of Central Bank policies, the market will closely monitor the trend of the Canadian dollar exchange rate and its impact on the overall Canadian economy.