The Canadian dollar strengthened past 1.38 per US dollar, rebounding from the two-month low of 1.386 seen July 31st, as the greenback tumbled following July’s nonfarm payrolls adding just 73,000 jobs versus 110,000 expected and downward revisions slashing 258,000 positions, intensifying bets on Fed rate cuts by September. At the same time, Canada’s economy showed surprising resilience, with May’s 0.1% GDP contraction giving way to a likely 0.1% rebound in June and a 0.7% surge in manufacturing output, bolstering the Bank of Canada’s decision to hold its policy rate at 2.75% and contrasting sharply with the Fed’s dovish pivot. Although President Trump’s abrupt 35% tariff announcement briefly rattled markets, Canada’s USMCA exemptions cap the effective levy on exports at roughly 5%, muting any major hit to cross-border trade flows.