USD/CAD Forecast: Pair Holds Steady Near 1.3650 Amid US Jobs Data Anticipation

USD/CAD Holds Steady Near 1.3650 Ahead of US Jobs Data

The USD/CAD pair is maintaining a tight range near 1.3650 during Wednesday’s early trading session, as forex traders adopt a wait-and-see approach ahead of crucial US economic data. With the June Nonfarm Payrolls (NFP) report looming, market participants are refraining from making bold moves.

Key Influences on USD/CAD:

• ADP Employment Change data is scheduled for release at 12:15 GMT, expected to offer clues on Friday's official NFP figures.
• According to the CME FedWatch Tool, traders increasingly expect the Federal Reserve to initiate a rate cut by September.
• Investor sentiment is also influenced by uncertainty around US bilateral trade deals, especially ahead of the July 9 tariff deadline.

Canada-US Trade Tensions Easing

In a positive development for the Canadian Dollar (CAD), White House economic adviser Kevin Hassett expressed optimism on renewed trade talks with Canada. This comes after Canada reversed its digital services tax, a move seen as an olive branch to U.S. negotiators and tech firms.

What to Watch:

• ADP Employment Change – Today at 12:15 GMT
• US Nonfarm Payrolls – Friday
• Fed’s Policy Outlook for September
• Tariff Deadline – July 9

Related Tredu Reads:

• What Drives USD/CAD Volatility?
• How NFP Affects Forex Markets
• Fed Rate Cuts: What They Mean for Currencies