- USD/CAD is hovering between slight gains/minor losses during the Asian session on Monday.
- Friday’s unimpressive Canadian jobs report weighs on the CAD and lends support to the pair.
- Middle East tensions are boosting oil prices, supporting the CAD and limiting gains in spot prices.
The USD/CAD pair extends its price consolidation move on the first day of the new week and is influenced by a combination of divergent forces. Spot prices are currently trading with a mild positive bias, around the 1.3735 region, although they remain well within the distance of a multi-week low touched on Friday.
Mixed Canadian employment data released on Friday appears to be weighing on the domestic currency, which, along with a modest rebound in the US Dollar (USD), acts as a tailwind for the USD/CAD pair. Statistics Canada reported that the number of employed people decreased by 2.8K in July, while the unemployment rate remained stable at 6.4% and average hourly wages increased by 5.2% compared to a year ago. Nonetheless, the data reaffirmed market bets for another 25 basis point (bps) rate cut by the Bank of Canada (BoC) in September and weakens the Canadian Dollar (CAD).
The US Dollar (USD), on the other hand, is attracting some safe haven flows amid rising geopolitical tensions and is proving to be another factor lending support to the USD/CAD pair. That said, bets on larger interest rate cuts by the Federal Reserve (Fed) are holding back USD bulls from placing aggressive bets. Adding to this is the risk of supply disruptions from the Middle East – amid the risk of a wider conflict in the region – which is helping crude oil prices stay close to a one-week peak, lending support to the commodity-linked CAD and capping the pair.
In the absence of any relevant market-moving economic releases on Monday, either from the US or Canada, the aforementioned fundamental backdrop warrants some caution before positioning for any significant gains. Traders also seem reluctant and prefer to wait for the release of US inflation figures this week – the Producer Price Index (PPI) and the Consumer Price Index (CPI) on Tuesday and Wednesday, respectively.
US Dollar PRICE Today
The table below shows the exchange rate of the US Dollar (USD) against major currencies today. The US Dollar was the strongest currency against the Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.00% | 0.03% | 0.21% | -0.00% | -0.15% | -0.14% | 0.05% | |
| EUR | -0.01% | 0.05% | 0.19% | -0.01% | -0.28% | -0.14% | 0.06% | |
| GBP | -0.03% | -0.05% | 0.39% | -0.06% | -0.32% | -0.20% | 0.02% | |
| JPY | -0.21% | -0.19% | -0.39% | -0.20% | -0.42% | -0.35% | -0.18% | |
| CAD | 0.00% | 0.00% | 0.06% | 0.20% | -0.20% | -0.13% | 0.08% | |
| AUD | 0.15% | 0.28% | 0.32% | 0.42% | 0.20% | 0.13% | 0.34% | |
| NZD | 0.14% | 0.14% | 0.20% | 0.35% | 0.13% | -0.13% | 0.21% | |
| CHF | -0.05% | -0.06% | -0.02% | 0.18% | -0.08% | -0.34% | -0.21% |
The heatmap shows percentage changes of major currencies. The base currency is selected from the left column, while the quote currency is selected from the top row. For example, if you choose the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change shown in the chart will represent the USD (base)/JPY (quote).
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
