- The Canadian dollar is driven by the weakness of the US dollar while the unemployment requests in the US jump to 247k
- The PMI Ivey of Canada contracts for the second month, but the commercial deficit is drastically expanded by the fall of exports.
- The market approach moves to NFP and Canadian employment data; The US is expected to add 130K, while Canada would lose 12.5K jobs.
The USD/CAD extended its losses on Thursday in the middle of an agenda occupied on both sides of the border, with the unemployment benefits data in the US exceeding the forecasts. At the same time, Canada’s PMI Ivey shows that business activity contracted for the second consecutive month. At the time of writing, the torque is lowering 0.22% to 1,3646.
The Canadian dollar advances slightly despite the weak internal data, while operators expect the US market reports and Canada on Friday
The US Labor Statistics Office (BLS) rose to 247K, exceeding the previous week of 240k, and above the 235K forecasts. The data followed a discouraging APP employment change report that showed that companies only added 37K people to the workforce in May, revealed on Wednesday.
At the same time, the US trade deficit was reduced in April, according to the US Department of Commerce.
In Canada, May PMI Ivey contracted for the second consecutive month, although it improved 47.9 to 48.9. Previously, Canada statistics revealed that the commercial balance deficit was extended from -0.51 billion to -7.14 billion, since exports fell 10.8% in April, its lowest level since June 2023.
Investors focus on the non -agricultural payroll figures of the US of Friday and the change of employment in Canada. The first is expected to show that the economy added 130k jobs in May. It is projected that the Canadian economy will lose 12.5K jobs of the workforce.
USD/CAD price forecast: technical perspective
The USD/CAD has fallen to annual minimums of 1,3633 amid uncertainties about US commercial policies although recent news arose that the call between Trump and XI was positive and improved the mood, investors are increasing their long positions in the Canadian dollar.
Technically speaking, the torque is forming a bullish wedge, suggesting that the USD/CAD could be prepared for a break above May 29, 1,3861. If it exceeds, the pair could challenge 1.40.
On the contrary, a daily closure below 1.36 establishes the stage for a downward movement towards the minimum of October 24, 2024 of 1,3471.
Canadian dollar price this week
The lower table shows the change percentage of the Canadian dollar (CAD) compared to the main currencies this week. Canadian dollar was the strongest currency against the US dollar.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.93% | -0.95% | -0.24% | -0.64% | -1.37% | -1.53% | -0.41% | |
| EUR | 0.93% | -0.03% | 0.69% | 0.28% | -0.44% | -0.64% | 0.52% | |
| GBP | 0.95% | 0.03% | 0.76% | 0.31% | -0.41% | -0.60% | 0.55% | |
| JPY | 0.24% | -0.69% | -0.76% | -0.41% | -1.12% | -1.31% | -0.25% | |
| CAD | 0.64% | -0.28% | -0.31% | 0.41% | -0.71% | -0.92% | 0.24% | |
| Aud | 1.37% | 0.44% | 0.41% | 1.12% | 0.71% | -0.14% | 1.04% | |
| NZD | 1.53% | 0.64% | 0.60% | 1.31% | 0.92% | 0.14% | 1.16% | |
| CHF | 0.41% | -0.52% | -0.55% | 0.25% | -0.24% | -1.04% | -1.16% |
The heat map shows the percentage changes of the main currencies. The base currency is selected from the left column, while the contribution currency is selected in the upper row. For example, if you choose the Canadian dollar of the left column and move along the horizontal line to the US dollar, the percentage change shown in the box will represent the CAD (base)/USD (quotation).
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.
