- USD/CAD is eyeing more weakness below 1.3500 as the focus has shifted to employment data.
- The DXY may surrender the 110.00 cushion amid weaker US NFP projections.
- An upbeat consensus for Canada’s labor market data amid hawkish BOC will strengthen loonie.
The USD/CAD pair has turned sideways in early Asia after dropping to near the psychological cushion of 1.3500. The major is expected to surrender the 1.3500 cushion and will deliver more weakness ahead. On a broader note, the asset shifted into a negative trajectory after dropping below the crucial support of 1.3600.
The pair is displaying a vulnerable performance as the US dollar index (DXY) is going through a rough time ahead of the US employment data. Policy tightening measures by the Federal Reserve (Fed) have started displaying their consequences and the job creation process is a major victim now. Investors are dumping the DXY on lower consensus for the Nonfarm Payrolls (NFP) data. Weaker-than-expected US employment data will force the Fed to slow down the pace of hiking interest rates.
The US NFP is seen lower at 250k vs. the prior release of 315k. While the Unemployment Rate is seen stabilizing at 3.7%.
On the loonie front, investors are similarly looking for the Canadian employment data, which is due on Friday. Net Change in Employment is seen extremely higher at 20k vs. the prior release of -39.7k. While the jobless rate is seen steady at 5.4%. In times, when the Bank of Canada (BOC) is continuously escalating the interest rate, upbeat employment data will delight the central bank.
Meanwhile, oil prices have comfortably established above the $85.00 hurdle ahead of the OPEC+ meeting. Oil prices have remained in negative territory for the past few months, which will force the oil cartel to announce production cuts. The majority of the OPEC members have not been able to produce promised output. Therefore, the production cuts are not expected to be huge and a pullback in the black gold will conclude.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD bulls remain on the sidelines amid mixed cues
AUD/USD remains below the 0.6300 mark during the Asian session on Friday as the US tariff uncertainty continues to weigh on investors' sentiment. However, bets that the Fed will cut interest rates thrice in 2025 fail to assist the USD to build on this week's modest bounce from a multi-month low and act as a tailwind for the currency pair.
USD/JPY edges higher to 148.00; not out of the woods yet
USD/JPY ticks higher during the Asian session on Friday, yet the near-term bias leans bearish, driven by divergent BoJ-Fed expectations. Global trade war fears and risk-off mood support the safe-haven JPY. Limited USD buying confirms the pair's negative outlook.
Gold price sits near the all-time high; $3,000 in sight.
Gold consolidates its record high rally, remaining near $3,000. Rising trade tensions underpin the safe-haven bullion. Fed rate-cut expectations and subdued USD demand benefit the non-yielding yellow metal.
Stablecoin regulatory bill receives green light during Banking Committee hearing
The US Senate Banking Committee voted on Thursday to advance the Guiding and Establishing National Innovation for US Stablecoins Act, which aims to establish proper regulations for stablecoin payments in the country.
Brexit revisited: Why closer UK-EU ties won’t lessen Britain’s squeezed public finances
The UK government desperately needs higher economic growth as it grapples with spending cuts and potential tax rises later this year. A reset of UK-EU economic ties would help, and sweeping changes are becoming more likely.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.