Key moments
- USD/CAD off Thursday’s 1 1/2-week low amid ongoing US tariff uncertainty
- CAD has limited scope to appreciate – analyst
- US, Canadian employment data sets in focus
The USD/CAD currency pair rebounded from recent 1 1/2-week low of 1.4237 on Friday ahead of the release of US and Canadian employment data sets.
Meanwhile, confusion over US trade policy continued to dominate market sentiment.
Employers in all sectors of the US economy, excluding farming, probably added 160,000 job positions in February, according to market consensus, following a job growth of 143,000 in January. Weaker-than-expected employment figures could weigh on the greenback.
At the same time, Canadian economy probably created 20,000 jobs in February, according to market consensus, following a job growth of 76,000 in January. If expectations were met, this would be the slowest employment growth since October 2024.
And, the rate of unemployment in the country is expected to have risen to 6.7% in February from 6.6% in January.
According to ING analyst Francesco Pesole, the Canadian Dollar has limited room to appreciate against its US counterpart, after the Trump administration temporarily delayed tariffs on many imports from Canada and Mexico.
“Markets had never priced in 25% tariffs as a long-lasting measure, and USD/CAD already corrected from the highs before yesterday’s move,” Pesole wrote in an investor note.
Canada still faces a blow from reciprocal US tariffs in April, Pesole noted.
The USD/CAD currency pair was last up 0.16% on the day to trade at 1.4314. Still, the major Forex pair looked set for a 0.99% weekly loss.
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