Select Language

USD/CAD Price Forecast: Seems vulnerable below 1.3700; US/Canadian jobs data awaited

Breaking news

USD/CAD Price Forecast: Seems vulnerable below 1.3700; US/Canadian jobs data awaited

  • X
  • facebook
  • LINE
  • RSS

  • X
  • facebook
  • LINE
  • RSS
New update 2025.06.06 16:13
USD/CAD Price Forecast: Seems vulnerable below 1.3700; US/Canadian jobs data awaited

update 2025.06.06 16:13

  • USD/CAD struggles to attract any meaningful buyers and consolidates near the YTD low.
  • US-Canada trade deal hopes underpin the CAD, though a stronger USD supports the pair.
  • The technical setup favors bearish traders and backs the case for further depreciation.

The USD/CAD pair extends its sideways consolidative price move for the second straight day on Friday and trades around the 1.3665 region during the early European session. Spot prices remain close to the year-to-date low touched on Thursday and seem vulnerable to sliding further.

The Canadian Dollar (CAD) continues to draw support from reports that a trade deal between the US and Canada could happen before the G7 Summit on June 15, which, in turn, is seen acting as a headwind for the USD/CAD pair. However, a goodish pickup in the US Dollar (USD) demand helps limit the downside ahead of the crucial monthly employment details from the US and Canada, due later today.

From a technical perspective, the overnight close below the 1.3700 mark for the second straight day and negative oscillators on the daily chart validate a bearish breakdown. Hence, some follow-through weakness below the 1.3635 region, the YTD low, en route to the 1.3600 round figure, looks like a distinct possibility before the USD/CAD pair eventually drops to the 1.3545 region and the 1.3500 psychological mark.

On the flip side, any attempted recovery might now confront an immediate strong barrier near the 1.3700-1.3710 region. The next relevant hurdle is pegged near the 1.3735-1.3740 area, which if cleared decisively might trigger a short-covering rally and lift the USD/CAD pair towards the 1.3775 intermediate hurdle. The momentum could extend further beyond the 1.3800 mark, towards the 1.3850-1.3860 heavy supply zone.

USD/CAD daily chart

Economic Indicator

Net Change in Employment

The Net Change in Employment released by Statistics Canada is a measure of the change in the number of people in employment in Canada. Generally speaking, a rise in this indicator has positive implications for consumer spending and indicates economic growth. Therefore, a high reading is seen as bullish for the Canadian Dollar (CAD), while a low reading is seen as bearish.

Read more.

Next release: Fri Jun 06, 2025 12:30

Frequency: Monthly

Consensus: -15K

Previous: 7.4K

Source: Statistics Canada

Canada's labor market statistics tend to have a significant impact on the Canadian dollar, with the Employment Change figure carrying most of the weight. There is a significant correlation between the amount of people working and consumption, which impacts inflation and the Bank of Canada's rate decisions, in turn moving the C$. Actual figures beating consensus tend to be CAD bullish, with currency markets usually reacting steadily and consistently in response to the publication.


Date

Created

 : 2025.06.06

Update

Last updated

 : 2025.06.06

Related articles


Show more

FXStreet

Financial media

arrow
FXStreet

FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.

Was this article helpful?

We hope you find this article useful. Any comments or suggestions will be greatly appreciated.  
We are also looking for writers with extensive experience in forex and crypto to join us.

please contact us at [email protected].

Thank you for your feedback.
Thank you for your feedback.

Most viewed

Canadian Dollar gives back gains despite upbeat jobs data

The Canadian Dollar (CAD) saw firm gains in employment figures on Friday, with an overall net increase in Canadian employment thumping median market forecasts for a contraction.
New
update2025.06.07 06:04

Mexican Peso climbs to eight-month highs against the US Dollar despite upbeat US jobs data

The Mexican Peso (MXN) is experiencing its third consecutive day of gains against the US Dollar (USD) on Friday, pushing the USD/MXN exchange rate to its lowest level in eight months.
New
update2025.06.07 04:39

USD/JPY Price Forecast: Soars to weekly high, near 145.00 on hot US jobs report

USD/JPY extended its uptrend for two consecutive days, with the major currency pair reaching a new weekly high of 145.09, driven by solid US economic data on Friday.
New
update2025.06.07 04:37

EUR/USD declines on hot US NFP report, dents ECB-driven Euro rally

EUR/USD trip down extends its losses on Friday after hitting a six-week high near 1.1500 as Nonfarm Payroll figures in the United States (US) came in stronger than expected despite cooling off.
New
update2025.06.07 03:56

Dow Jones Industrial Average tests fresh highs on NFP beat despite downside revisions

The Dow Jones Industrial Average (DJIA) briefly tested fresh 13-week peaks on Friday, with equities taking a step higher after Nonfarm Payrolls (NFP) jobs data came in stronger than expected.
New
update2025.06.07 03:03

Silver Price Forecast: XAG/USD hits a 13-year high on increased demand for the industrial metal

Silver (XAG/USD) is experiencing another day of positive gains, which has pushed prices to $36.00, its highest level since February 2012, providing a firm barrier of resistance. 
New
update2025.06.07 02:45

Gold price falls on strong US Nonfarm Payrolls yet is poised for weekly advance

Gold price extended its losses for the second consecutive day on Friday but is poised to finish the week with gains of over 1.30% after the latest Nonfarm Payrolls report in the United States (US) was solid, pressuring traders to trim their bets that the Federal Reserve (Fed) will ease monetary poli
New
update2025.06.07 02:15

Fed's Harker: Still possible the Fed can cut rates later this year

Federal Reserve (Fed) Bank of Philadelphia President Patrick Harker is embarking on a farewell tour.
New
update2025.06.07 01:57

AUD/USD falls as US Dollar bulls return following NFP data

The Australian Dollar (AUD) is weakening against the US Dollar (USD) following Friday's Nonfarm Payrolls (NFP) pushed back expectations of a near-term interest rate cut from the Federal Reserve (Fed).
New
update2025.06.07 00:52

GBP/USD slips as strong US jobs data cools Fed rate cut bets

GBP/USD tumbled during the North American session, down over 0.30% after the latest jobs report in the United States (US) maintained the status quo, with the economy remaining strong. The pair traded at 1.3526 after hitting a daily high of 1.3586.
New
update2025.06.07 00:21

Disclaimer:arw

All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.

The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.

  • Facebook
  • Twitter
  • LINE

Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy

I agree
share
Share
Cancel