Investors await May employment data from the US and Canada to gauge monetary policy shifts by the Fed and Bank of Canada.
The USD/CAD pair remains near 1.3900, trading slightly lower in European hours as markets brace for US and Canadian employment data due at 12:30 GMT. The reports will offer clues on potential monetary policy adjustments by the Federal Reserve and Bank of Canada.
US Nonfarm Payrolls are forecast to show 85K jobs added in May, down from 115K in April, while the unemployment rate is expected to hold at 4.3%. Canada’s report may reveal 10K jobs added after a 17.7K decline in April, with unemployment steady at 6.9%.
Geopolitical tensions, including conflicts between Israel and Lebanon, could support oil prices, adding further volatility to the Loonie. The pair’s technical outlook remains bullish, trading above its 20-day EMA at 1.3805.