USD/CAD Stuck Near 1.3700 as Traders Await US Trade and Canada Jobs Data

USD/CAD Stuck Near 1.3700 as Traders Await US Trade and Canada Jobs Data

The USD/CAD pair continues to hover around the 1.3700 mark during Thursday’s Asian session, with the 20-day Exponential Moving Average (EMA) offering a nearby technical anchor. The pair remains trapped in a tight range amid investor caution and a lack of fresh drivers.

Cautious Market Mood on Trade Uncertainty

Traders are holding back as markets await concrete developments in US trade negotiations with key partners, including Canada, China, and the Eurozone. US President Donald Trump recently reintroduced tariffs on 21 countries, adding further strain to global trade sentiment. Countries like Japan and South Korea are among those now facing 25% tariffs, undermining risk appetite.

Fed Minutes Offer No Rate Cut Relief

The FOMC minutes from the June policy meeting, released Wednesday, revealed that a majority of Fed officials are not in favor of near-term interest rate cuts, limiting USD downside while also restraining bullish enthusiasm.

At the time of writing, the US Dollar Index (DXY) trades around 97.40, reflecting a cautious market stance.

Canada Jobs Data in Focus

Markets now shift attention to the Canadian employment report for June, due Friday, which could inject fresh volatility into the USD/CAD pair. Strong jobs data might support the Loonie, while a weak print could push the pair higher.

Technical Outlook:

• Resistance: 1.3730
• Support: 1.3660
• Key indicator: 20-day EMA
• Bias: Neutral until a breakout occurs