In Asian trade Friday, USD/CAD fell for a third straight session, trading near 1.3970. Progress in Middle East diplomacy has eased oil-market stress—normally a negative for commodity-linked CAD—but weakening safe-haven demand and softer Fed-hike expectations have kept the dollar on the back foot. Traders now price roughly a 75% chance of a 25bp Fed move in December, down from 84.2% a day earlier. Offsetting that, recent US data showed resilience: preliminary GDP YoY 3.4% (consensus 3.2%; Q2 2.2%

In Asian trade Friday, USD/CAD fell for a third straight session, trading near 1.3970. Progress in Middle East diplomacy has eased oil-market stress—normally a negative for commodity-linked CAD—but weakening safe-haven demand and softer Fed-hike expectations have kept the dollar on the back foot. Traders now price roughly a 75% chance of a 25bp Fed move in December, down from 84.2% a day earlier. Offsetting that, recent US data showed resilience: preliminary GDP YoY 3.4% (consensus 3.2%; Q2 2.2%) and core PCE YoY 3.1% in line with expectations, supporting the case for further Fed tightening.