- USD/CAD remains offered near 1.3700 as the US Dollar struggles to hold an auction above 105.00.
- Weak US data and less hawkish commentary from Fed Williams have weighed on the US Dollar.
- Canadian employers are anticipated to have hired 20K job-seekers in April.
The USD/CAD pair consistently faces pressure near the round-level resistance of 1.3700. The Loonie asset is broadly sideways around 1.3680 due to the absence of top-tier United States economic data this week. In Canada, investors will keenly focus on the Employment data for April, which will be released on Friday.
Therefore, speculation about the Federal Reserve’s (Fed) and Bank of Canada’s (BoC) interest rate outlook will guide the movement in the Loonie asset.
The market sentiment is slightly bullish amid firm speculation that the Fed will begin lowering interest rates from its current level in the September meeting. The S&P 500 opens on a cautiously positive note, suggesting an improvement in investors’ risk appetite. 10-year US Treasury yields have dropped to 4.45% as the Fed unwinding its restrictive interest rate stance is an unfavorable condition for interest-bearish assets.
The US Dollar Index (DXY) struggles to sustain above 105.00 as weak US Nonfarm Payrolls (NFP) and poor Services PMI data for April has prompted expectations for the Fed to start reducing borrowing rates from September. Weak US data has raised concerns over the US economic outlook, which investors had been anticipating as strong due to upbeat Gross Domestic Product (GDP) growth.
Meanwhile, less hawkish commentary from Fed policymakers has also weighed on the US Dollar. On Monday, New York Fed Bank President John Williams said the next move from the central bank will be rate cuts.
On the Canadian Dollar front, investors await the Employment data that will influence expectations for BoC rate cuts, which are currently anticipated in the June meeting. Statistics Canada is expected to report an increase in number of payrolls by 20K against a drawdown of 2.2K in March. The Unemployment Rate is estimated to increase to 6.2% from the prior reading of 6.1%. Investors will keenly focus on the annual Average Hourly Wages data that will indicate wage growth, which indicates the inflation outlook.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD stays in positive territory above 1.0850 after US data
![EUR/USD stays in positive territory above 1.0850 after US data](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/EURUSD/money-euro-and-dollar-banknotes-17371247_XtraSmall.jpg)
EUR/USD clings to modest daily gains above 1.0850 in the second half of the day on Friday. The improving risk mood makes it difficult for the US Dollar to hold its ground after PCE inflation data, helping the pair edge higher ahead of the weekend.
GBP/USD stabilizes above 1.2850 as risk mood improves
![GBP/USD stabilizes above 1.2850 as risk mood improves](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/GBPUSD/strong-pound-weak-dollar-17536259_XtraSmall.jpg)
GBP/USD maintains recovery momentum and fluctuates above 1.2850 in the American session on Friday. The positive shift seen in risk mood doesn't allow the US Dollar to preserve its strength and supports the pair.
Gold rebounds above $2,380 as US yields stretch lower
![Gold rebounds above $2,380 as US yields stretch lower](https://editorial.fxstreet.com/images/Markets/Commodities/Metals/Gold/gold-gm187363896-28836378_XtraSmall.jpg)
Following a quiet European session, Gold gathers bullish momentum and trades decisively higher on the day above $2,380. The benchmark 10-year US Treasury bond yield loses more than 1% on the day after US PCE inflation data, fuelling XAU/USD's upside.
Avalanche price sets for a rally following retest of key support level
![Avalanche price sets for a rally following retest of key support level](https://editorial.fxstreet.com/images/Avalanche/Avalanche_XtraSmall.jpg)
Avalanche (AVAX) price bounced off the $26.34 support level to trade at $27.95 as of Friday. Growing on-chain development activity indicates a potential bullish move in the coming days.
The election, Trump's Dollar policy, and the future of the Yen
![The election, Trump's Dollar policy, and the future of the Yen](https://editorial.fxstreet.com/images/Macroeconomics/Events/US%20Elections/Donald_Trump_closeup_XtraSmall.jpg)
After an assassination attempt on former President Donald Trump and drop out of President Biden, Kamala Harris has been endorsed as the Democratic candidate to compete against Trump in the upcoming November US presidential election.