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USD/CAD rebounds as oil prices dip and US rates expectations firm

The pair was trading around 1.4230 during Asian hours, with markets focused on US September employment data ahead of Friday.

Reported · Written up by our desk · Major Pairs

USD/CAD rebounded after falling the prior day, trading around 1.4230 during Asian hours on Friday, as the US dollar found stronger support, according to FXStreet.

FXStreet attributed the move to persistent inflation concerns linked to elevated energy costs and expectations for higher US interest rates, with traders also watching Friday’s US September employment data for signals on future Federal Reserve policy.

Nonfarm Payrolls are projected to add 90,000 jobs, down from 162,000 in the prior month, and the unemployment rate is expected to remain at 4.1%, FXStreet reported.

FXStreet also pointed to weakness in the commodity-linked Canadian dollar, which has been pressured by falling crude prices as regional supply flows from the Middle East largely recovered to prewar levels, even as traders remain skeptical that the recovery can last without a formal end to the conflict.

Latest closeWTI crude $90.46 ▲1.2%

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