The Canadian dollar weakened past 1.396 per US dollar, the lowest since May, as softer domestic data increased expectations of further Bank of Canada easing and oil prices retreated. After the BoC cut the policy rate to 2.50% on September 17th the Summary of Deliberations signalled openness to additional cuts if downside risks persist, which pushed markets to price further easing and reduced demand for yield-sensitive capital in CAD. S&P Global’s Canada Manufacturing PMI fell to 47.7 in September, the eighth consecutive monthly contraction, underscoring cooling new orders and output and reinforcing the case for lower rates. Weaker crude amid prospects of higher OPEC+ output and softer demand from the US and Asia removed an important terms-of-trade support, compounding pressure on the currency.