- The USD/CAD struggles to attract significant buyers and consolidates near the minimum of the year.
- The hopes of a commercial agreement between the US and Canada support the CAD, although a stronger USD supports the torque.
- The technical configuration favors the bassist traders and supports the case for greater depreciation.
The USD/CAD pair extends its consolidative lateral movement for the second consecutive day on Friday and quotes around the 1,3665 region during the early European session. Cash prices remain close to the minimum of the year reached on Thursday and seem vulnerable to an additional fall.
The Canadian dollar (CAD) continues to receive support from reports that indicate that a commercial agreement between the US and Canada could be completed before the G7 summit on June 15, which, in turn, is considered a wind against for the USD/CAD torque. However, a good rebound in the demand of the US dollar (USD) helps limit the decline before the crucial use of US and Canada’s monthly employment data, which will be published later today.
From a technical perspective, the closure of the previous night below the 1,3700 brand for the second consecutive day and the negative oscillators in the daily graphic validate a bearish break. Therefore, some additional weakness below the region of 1,3635, the minimum of the year, in the direction of the round 1,3600 figure, seems a different possibility before the USD/CAD pair eventually falls to the region of 1,3545 and the psychological brand of 1,3500.
On the other hand, any attempt of recovery could now face a strong immediate barrier near the 1,3700-1,3710 region. The following relevant obstacle is located near the area of ​​1,3735-1.3740, which if it is exceeded decisively could trigger a short coverage rally and raise the USD/CAD pair towards the intermediate obstacle of 1,3775. The impulse could be extended even more beyond the 1,3800 brand, towards the strong offer area of ​​1,3850-1.3860.
USD/CAD DIARY GRAPH
Economic indicator
Net change in employment
Data published by Statistics Canada which measures changes in the number of people employed in Canada. An increase in this indicator has positive implications on consumer spending and ends up stimulating economic growth. A result superior to the market consensus is bullish for the Canadian dollar, while a lower result is bassist.
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Next publication: Old Jun 06, 2025 12:30
Frequency: Monthly
Dear: -15k
Previous: 7.4K
Fountain: Statistics Canada
Canada’s labor market statistics tend to have a significant impact on the Canadian dollar, and the exchange figure in employment has most of the weight. There is significant correlation between the number of people who work and consumption, which impacts inflation and rates decisions of the Bank of Canada, which in turn move the Canadian dollar. The real figures that exceed consensus tend to be bullies of the CAD, and the currency markets usually react constantly and consistently in response to the publication.
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.
