USD/CAD struggles to gain ground as Fed's Powell turns dovish on interest rate outlook

• USD/CAD remains under pressure as Fed's Powell signals that he is open to monetary policy adjustments.
• Fed Powell's dovish interest rate guidance has battered the US Dollar.
• Investors await US Durable Goods, PCE inflation, and Canada's GDP data.

The USD/CAD pair struggles for a firm-footing during the Asian session on Monday after sliding almost 0.8% to near 1.3820 on Friday. The Loonie pair stays under pressure as comments from Federal Reserve (Fed) Chair Jerome Powell in his speech at the Jackson Hole (JH) Symposium on Friday signaled that he is open to unwinding monetary policy restrictiveness, citing downside employment risks.

During the Asian session, the US Dollar Index (DXY), which tracks the Greenback's value against six major currencies, trades slightly higher. Still, the DXY is close to its almost four-week low below 98.00.

"Nonetheless, with policy in restrictive territory, the baseline outlook and the shifting balance of risks may warrant adjusting our policy stance," Powell said. He acknowledged rising downside employment risks, while risks to inflation remain tilted to the upside.

According to the CME FedWatch tool, there is an 87% chance that the Fed will cut interest rates in the September monetary policy meeting,

This week, investors will focus on the United States (US) Durable Goods Orders, and Personal Consumption Expenditure Price Index (PCE) data for July.

In Canada, investors will pay attention to the June's and Q2 Gross Domestic Product (GDP) data, which will be published on Friday. The Canadian economy is estimated to have expanded 0.1% in June after declining by the same pace in May.