Canadian Dollar Loses Gains Despite Positive Jobs Data

USD/CAD sees a rebound as the US Dollar strengthens against the Canadian Dollar.
US job growth outpaces expectations, overshadowing Canadian employment data.
Anticipation builds for US CPI data following new tariffs, while Canadian economic announcements are expected to be light.

Despite positive employment trends in Canada, with job growth surpassing expectations on Friday, the US Dollar gained momentum following a robust US Nonfarm Payrolls report, which outshone the Canadian data. This led to a notable rise in the USD/CAD pair.

Next week, the Canadian Dollar could face challenges due to a thin economic calendar in Canada, contrasted with significant US data releases. The upcoming US CPI data, influenced by recent tariff implementations, is particularly in focus and could drive market volatility.

Market Analysis: Canadian Dollar’s Gains Diminished by Strong US Employment Data

The Canadian Dollar slightly retreated against the US Dollar, with USD/CAD climbing back to around the 1.3700 level.
Canada reported an unexpected increase in employment, adding 8.8K jobs against the forecasted decline.
The US added 139K jobs, slightly down from the previous month but still above expectations, highlighting robust economic health.
Both countries’ job data surprised the market, indicating the complexity of predicting economic effects amid fluctuating US trade policies.
With limited Canadian data expected next week, all eyes will be on the US CPI figures, which are anticipated to reflect the initial impact of recent trade tariffs.

Canadian Dollar Outlook

While the Canadian Dollar maintains a bullish outlook against the US Dollar, pushing USD/CAD below the 1.3700 mark remains challenging. The downtrend from earlier yearly highs suggests continued support for the Loonie, albeit with some resistance.