USD/CAD trades higher on Friday, rising 0.13% to near 1.4200 at the time of writing. The pair remains supported as persistent weakness in the Canadian Dollar (CAD) outweighs the pressure on the US Dollar (USD) following softer-than-expected US labor market data.
The US Dollar remains under pressure after the United States (US) economy added just 57K Nonfarm Payrolls (NFP) in June, well below market expectations of 110K. In addition, the previous month’s reading was revised down to 129K from 172K. The weaker employment report prompted investors to scale back expectations for Federal Reserve (Fed) tightening. According to the CME FedWatch tool, the chance of a September rate hike fell to 53% from 63% before the data release, while the odds of a December hike remain at 76.8%.
However, the downside in USD/CAD is limited by continued weakness in the Canadian Dollar. The commodity-linked currency remains under pressure as lower global Oil prices reduce Canada’s terms-of-trade advantage and reinforce expectations that the Bank of Canada (BoC) could maintain a dovish policy stance if disinflation continues.
Domestic data has provided only limited support for the Loonie. Canada’s S&P Global Manufacturing Purchasing Managers Index (PMI) edged up to 53 in June from 52.9 in May, pointing to a modest expansion in manufacturing activity. Meanwhile, economists at Wells Fargo believe Canada’s labor market is soft but stabilizing, with employment growth remaining below 1% YoY and gains concentrated in full-time jobs. The bank expects these conditions to support the Bank of Canada keeping interest rates on hold for the foreseeable future.
Investors now turn their attention to Canada’s employment report, which could provide fresh guidance on the outlook for the Canadian economy and the BoC’s next policy decisions.
Canadian Dollar Price Today
The table below shows the percentage change of Canadian Dollar (CAD) against listed major currencies today. Canadian Dollar was the strongest against the Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.09% | -0.03% | 0.10% | 0.15% | -0.16% | -0.19% | -0.00% | |
| EUR | 0.09% | 0.05% | 0.17% | 0.23% | -0.12% | -0.10% | 0.08% | |
| GBP | 0.03% | -0.05% | 0.11% | 0.18% | -0.18% | -0.15% | 0.04% | |
| JPY | -0.10% | -0.17% | -0.11% | 0.08% | -0.28% | -0.28% | -0.08% | |
| CAD | -0.15% | -0.23% | -0.18% | -0.08% | -0.37% | -0.35% | -0.15% | |
| AUD | 0.16% | 0.12% | 0.18% | 0.28% | 0.37% | 0.02% | 0.22% | |
| NZD | 0.19% | 0.10% | 0.15% | 0.28% | 0.35% | -0.02% | 0.19% | |
| CHF | 0.00% | -0.08% | -0.04% | 0.08% | 0.15% | -0.22% | -0.19% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Canadian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent CAD (base)/USD (quote).
Source: Original Article
