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USD/CAD holds near 1.4023 as traders await July labor data
CME FedWatch shows a 54.5% chance of a September Fed rate hike, while Canada is expected to add 15K jobs in July and keep unemployment at 6.5%.
The Canadian dollar edged lower against the US dollar on Friday, with USD/CAD rising to around 1.4023 in European trading, and the pair expected to trade mostly sideways ahead of July labor market data from both the United States and Canada, according to FXStreet.
FXStreet cited CME FedWatch indicating a 54.5% probability that the Federal Reserve will raise interest rates at its September policy meeting. On the data front, the US and Canada releases are expected to provide new cues on the Fed and the Bank of Canada’s monetary policy outlook.
FXStreet also pointed to Canada’s labor market expectations, including 15K fresh jobs in July versus 18.2K in June, and an unemployment rate seen steady at 6.5%. The article said USD/CAD was holding below the 20-period EMA at 1.4062, keeping a bearish near-term bias.
On technical levels, FXStreet noted that a bullish flag chart pattern still suggests the broader trend is bullish, with resistance clustered between 1.4062 and 1.4076. A decisive break above that zone could open the way toward 1.4200, while support is cited near 1.3902.