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Market participants expect to see a rebound in Canada’s labor market, and an uptick in employment may prop up the Canadian dollar as it raises the scope for a rate hike.

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A rebound in U.S. durable goods should help to prop up the dollar as it raises the fundamental outlook for the world’s largest economy, and the development may encourage the Fed to drop its dovish tone for monetary policy as the recovery gets on a more sustainable path.

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As the 4Q GDP report is expected to show a slower rate of growth in New Zealand, the development could ultimately fuel a bearish reaction in the NZDUSD.

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The Swiss National Bank is expected to retain a wait-and-see approach in March, but the policy statement could shake up the Swiss franc as market participants weigh the fundamental outlook for the region.

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Beyond the Federal Open Market Committee interest rate decision, the fundamental assessment of the world’s largest economy could shake up the foreign exchange market as currency traders weigh the outlook for monetary policy.

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Economic activity expected to expand at slower pace in the fourth quarter, and the protracted recovery may spur a bearish outlook for the Canadian dollar as it dampens the prospects for higher interest rates.

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