Weaker-than-expected US jobs data sparks Fed rate cut speculation, pressuring the USD and lifting the USD/CAD pair toward key support levels.
The USD/CAD pair trades lower near 1.4175 in European trading Friday, driven by a softer US Dollar amid fading Federal Reserve rate hike expectations. The US Dollar Index (DXY) fell 0.14% to 100.70 after June’s Nonfarm Payrolls missed estimates, adding just 57K jobs versus the 110K forecast.
Investors are now eyeing June’s US ISM Services PMI for further direction, while the Canadian Dollar faces headwinds from declining oil prices. Canada’s currency remains under pressure as crude retreats to pre-Middle East conflict levels, with progress in US-Iran talks easing supply concerns.
Technically, USD/CAD holds above its 20-day and 50-day EMAs, signaling a bullish bias, though a correction toward the 20-day EMA near 1.4110 remains possible.