USD/CAD Stuck in Range Near 1.3650 as Traders Wait for US Jobs Data
The USD/CAD currency pair is moving in a very tight range around 1.3650 in early Wednesday trading. There hasn’t been much action since Tuesday, as traders are waiting for important job data from the US, which could bring some movement.
The key focus is on the upcoming Nonfarm Payroll (NFP) report for June. Before that, the ADP employment data is expected and might give an early signal about the US labor market. The US central bank (Federal Reserve) is likely to keep interest rates unchanged this month, with a possible rate cut expected around September.
On the other hand, the Canadian Dollar is getting some support after Canada decided not to apply a digital tax on US tech companies. This could help improve trade talks between both countries starting as early as July 9.
From a technical point of view, USD/CAD is facing resistance near the 20-day moving average. The current RSI (a momentum indicator) is close to 40, which suggests there might be some pressure on the downside.
If the pair falls below 1.3540 (June’s low), it could head toward 1.3500 or even 1.3420. But if it breaks above 1.3820, it might move up toward 1.3920 or even 1.4000.
Impact:
USD/CAD might drop if US job numbers come out weak and trade tensions cool. A strong US labor report could push the pair higher.