The pair retreats from a two-day rally as traders await key employment data and oil prices weigh on the Canadian Dollar.
USD/CAD slipped to around 1.3650 on Friday, ending a two-day winning streak. The pair’s decline was modest as investors adopted a cautious stance ahead of the US Nonfarm Payrolls report and Canadian employment figures later in the session.
Prior to the data releases, the pair had climbed amid broader USD strength, though weaker oil prices limited gains for the CAD. Market expectations for the NFP report center on a print near 180,000 jobs, while Canadian employment data is also closely watched for signs of labor market resilience.
Trading remained subdued as participants awaited the reports, which could influence monetary policy expectations for both the Federal Reserve and the Bank of Canada.