USD/CAD rebounds firmly to near 1.3360 due to downbeat Canadian Employment report


  • USD/CAD has shown a solid recovery from the crucial support of 1.3320 after weaker-than-anticipated Canada’s job market data.
  • Canada’s Net Change in Employment dropped by 17.3K and the Unemployment Rate jumped to 5.2%.
  • S&P500 futures have turned positive after recovering their entire losses, portraying a risk-on market mood.

The USD/CAD pair has recovered sharply to near 1.3360 as Statistics Canada has reported poor Employment data (May). The Canadian labor market has posted a decline in payroll figures by 17.3K while the street was anticipating an addition of 23.2K. Last month the Canadian economy added 41.4K jobs. The Unemployment Rate has increased sharply to 5.2% vs. the estimates of 5.1% and the former release of 5.0%.

Apart from that, annual Average Hourly Earnings have softened to 5.1% from the prior release of 5.2%. This would also ease some heat in resilient consumer spending.

Considering the weakness in the Canadian Employment report, the Bank of Canada (BoC) might reconsider its intention of hiking interest rates further.

Investors should note that the BoC surprisingly raised interest rates by 25 basis points (bps) to 4.75% on Wednesday. BoC Governor Tiff Macklem decided to raise interest rates despite the consistent softening of Canada’s inflation. Consumer Price Index (CPI) in Canada was noted at 4.4% in April. BoC Macklem said in the monetary policy statement that inflationary pressures could turn sticky at these levels consumer spending is resilient. Also, remained doors open for further interest rate hikes.

S&P500 futures have turned positive after recovering their entire losses ahead of the New York session, portraying a risk-on market mood. Lowering the chances of one more interest rate hike from the Federal Reserve (Fed) has improved the appeal for risk-perceived assets.

The US Dollar Index (DXY) has retreated after failing to extend its recovery to near 103.60. Although expectations for a neutral interest rate policy stance by the Fed for the June meeting are skyrocketing, the release of the US CPI (May) data will be keenly watched which will release next week.

As per the preliminary report, headline inflation is expected to soften sharply amid declining oil prices while core inflation that excludes the oil and food prices could continue to remain persistent.

USD/CAD

Overview
Today last price 1.3332
Today Daily Change -0.0026
Today Daily Change % -0.19
Today daily open 1.3358
 
Trends
Daily SMA20 1.3502
Daily SMA50 1.3491
Daily SMA100 1.3516
Daily SMA200 1.3513
 
Levels
Previous Daily High 1.3388
Previous Daily Low 1.3334
Previous Weekly High 1.3651
Previous Weekly Low 1.3407
Previous Monthly High 1.3655
Previous Monthly Low 1.3315
Daily Fibonacci 38.2% 1.3355
Daily Fibonacci 61.8% 1.3367
Daily Pivot Point S1 1.3332
Daily Pivot Point S2 1.3306
Daily Pivot Point S3 1.3278
Daily Pivot Point R1 1.3386
Daily Pivot Point R2 1.3414
Daily Pivot Point R3 1.344

 

 

Share: Feed news

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.

XM
Account
7.2
Tools
9.2
Service
9.4
Trading
9.0
Trust
7.0
Experience
8.4
Read review
Moneta Markets
Account
7.4
Tools
6.6
Service
8.0
Trading
6.6
Trust
5.2
Experience
9.2
Read review
Trading Pro
Account
7.2
Tools
5.2
Service
6.6
Trading
8.0
Trust
5.0
Experience
7.0
Read review
Pepperstone
Account
8.2
Tools
8.2
Service
7.4
Trading
9.0
Trust
8.8
Experience
9.0
Read review
XM
Read review
Moneta Markets
Read review
Trading Pro
Read review
Pepperstone
Read review
Trading Pro
Read review
Pepperstone
Read review
XM
Read review
Moneta Markets
Read review
Trading Pro
Account
7.2
Tools
5.2
Service
6.6
Trading
8.0
Trust
5.0
Experience
7.0
Read review
Pepperstone
Account
8.2
Tools
8.2
Service
7.4
Trading
9.0
Trust
8.8
Experience
9.0
Read review
XM
Account
7.2
Tools
9.2
Service
9.4
Trading
9.0
Trust
7.0
Experience
8.4
Read review
Moneta Markets
Account
7.4
Tools
6.6
Service
8.0
Trading
6.6
Trust
5.2
Experience
9.2
Read review

Recommended content


Recommended content

Editors’ Picks

EUR/USD stabilizes above 1.1350 on Easter Friday

EUR/USD stabilizes above 1.1350 on Easter Friday

EUR/USD enters a consolidation phase above 1.1350 on Friday as the trading action remains subdued, with major markets remaining closed in observance of the Easter Holiday. On Thursday, the European Central Bank (ECB) announced it cut key rates by 25 bps, as expected.

EUR/USD News
GBP/USD fluctuates below 1.3300, looks to post weekly gains

GBP/USD fluctuates below 1.3300, looks to post weekly gains

After setting a new multi-month high near 1.3300 earlier in the week, GBP/USD trades in a narrow band at around 1.32700 on Friday and remains on track to end the week in positive territory. Markets turn quiet on Friday as trading conditions thin out on Easter Holiday.

GBP/USD News
Gold ends week with impressive gains above $3,300

Gold ends week with impressive gains above $3,300

Gold retreated slightly from the all-time high it touched at $3,357 early Thursday but still gained more than 2% for the week after settling at $3,327. The uncertainty surrounding US-China trade relations caused markets to adopt a cautious stance, boosting safe-haven demand for Gold.

Gold News
How SEC-Ripple case and ETF prospects could shape XRP’s future

How SEC-Ripple case and ETF prospects could shape XRP’s future

Ripple consolidated above the pivotal $2.00 level while trading at $2.05 at the time of writing on Friday, reflecting neutral sentiment across the crypto market. 

Read more
Future-proofing portfolios: A playbook for tariff and recession risks

Future-proofing portfolios: A playbook for tariff and recession risks

It does seem like we will be talking tariffs for a while. And if tariffs stay — in some shape or form — even after negotiations, we’ll likely be talking about recession too. Higher input costs, persistent inflation, and tighter monetary policy are already weighing on global growth. 

Read more
The Best brokers to trade EUR/USD

The Best brokers to trade EUR/USD

SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.

Read More

Forex MAJORS

Cryptocurrencies

Signatures

Best Brokers of 2025