Traders await Canada’s employment data for July, which may influence Bank of Canada rate cut expectations and currency moves.
The Canadian dollar traded near a one-week low against the U.S. dollar as investors awaited July employment data due later today. The report could sway expectations for Bank of Canada interest rate cuts, with markets pricing in potential easing later this year.
Canada’s June jobs report showed a surprise gain of 27,000 positions, beating forecasts, while the unemployment rate held at 6.4%. Economists expect July’s data to reflect slower hiring amid cooling economic activity.
The loonie has underperformed peers this week, pressured by weaker oil prices and risk-off sentiment. A softer jobs print could reinforce bets on a September rate cut, weighing further on the currency.