The Canadian dollar weakened to a one-week low on Tuesday, with the currency giving back much of the previous week's gains ahead of a speech by BOC Governor Macklem.
The BOC cut its policy rate by 25 bps as expected last week citing a weaker economy and less upside risk to inflation as reasons for its first rate reduction since March. Economists believe further rate relief is on the way.
There was a worse-than-expected contraction in Q2 GDP as tariffs squeezed exports, but higher household and government spending softened the blow somewhat, according to Statistics Canada.
Labour market lost a cumulative 100,000 jobs in July and August, pushing the unemployment rate up to 7.1%. Canada and Mexico have vowed closer co-operation on trade as both grapple with Trump's policies.
Annual inflation rate rose to 1.9% in August, picking up from 1.7% in July, as gasoline prices fell less sharply and food costs continued to climb. That could set the bar higher for further rate cuts.
For all the talk of whether the country needs a new oil pipeline, there's one thing missing: a company wanting to build it. In June, Alberta Premier Danielle Smith said there was "no proponent" on the table.
Loonie has been under selling pressures since the double-top pattern was formed. The path of least resistance is further weaknesses towards the low around 1.3840 per dollar.
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