EUR/CAD Moves Close to 1.6000 Before Canada Jobs Data
The EUR/CAD currency pair has moved up to around 1.5995 during early Friday trading. This rise comes after former U.S. President Donald Trump announced 35% tariffs on Canadian goods starting August 1. These tariffs have made the Canadian dollar weaker, helping the euro gain strength.
Now, traders are waiting for Canada’s employment report for June, which is expected later in the day. Experts believe the unemployment rate might go up from 7.0% to 7.1%, with no increase in job numbers. In May, Canada only added 8,800 jobs, so a weak report could raise the chances that the Bank of Canada will cut interest rates, which may weaken the Canadian dollar even more.
On the euro side, there’s also some concern about trade tensions between the U.S. and the European Union. Trump may also send out new tariff notices to EU countries. This uncertainty could continue to support the euro for now.
Impact:
If Canada’s job report is weak, EUR/CAD might rise above 1.6000. But if the data is stronger than expected, the pair could possibly drop back toward 1.5900.