The USD/CAD pair is currently directionally challenged as the Canadian dollar awaits jobs data. The Canadian dollar experienced fluctuations on Friday, following a significant increase in the number of new jobs created in Canada. The unemployment rate remained unchanged at 6.1%, with 90,400 new jobs added in April, surpassing expectations. However, concerns arose as a large portion of these new jobs were in the public sector, which may not contribute significantly to domestic economic growth.
The USD/CAD pair initially dropped to 1.3634 but quickly rebounded to 1.3693 on speculation that the employment data could delay an anticipated rate cut in June. Meanwhile, other G-10 major currencies traded within narrow ranges ahead of key US inflation reports scheduled for the week.
Asian and European equity markets remained stable, with S&P 500 futures flat and WTI oil prices hovering around $77.78-$78.92. The focus now shifts to the upcoming US PPI and CPI data releases, which are expected to influence market sentiment. In addition, GBP/USD traded cautiously due to a dovish outlook for UK rates, while USD/JPY was steady amid fears of BoJ intervention and softer US Treasury yields.
Overall, the USD/CAD pair is currently idling as market participants await further economic data releases to provide direction. While there are no significant US or Canadian economic reports scheduled for the day, investors are closely monitoring developments in the global economy for potential trading opportunities.