- USD/CAD recovers above 1.3600 during American session on Thursday.
- Nonfarm Payrolls in the US increased more than expected in June.
- Manufacturing PMI in Canada improved sharply in June.
The USD/CAD pair struggled to make a decisive move in either direction during the early American session and continued to fluctuate in a tight range. However, with the greenback gathering strength in the last hour, the pair rose above 1.3600 and was last seen gaining 0.21% on the day at 1.3613.
DXY gains traction on coronavirus worries
The data published by the US Bureau of Labor Statistics on Thursday revealed that Nonfarm Payrolls (NFP) surged by 4.8 million in June and the Unemployment Rate retreated to 11.1% from 13.3%. Although the upbeat jobs report boosted risk flows and weighed on the USD, the latest coronavirus figures from the US caused a shift in sentiment.
Florida reported more than 10,000 COVID-19 cases on Thursday, the biggest daily increase since the beginning of the pandemic. The US Dollar Index (DXY), which dropped below 97.00 with the initial reaction to the NFP data, is now up 0.1% on the day at 97.25.
On the other hand, Statistics Canada reported that Canada's international trade deficit narrowed to $677 million in May and came in much better than the market expectation for a deficit of $3 billion. Additionally, Markit Manufacturing PMI for Canada improved sharply from 40.6 in May to 47.8 in June. These data seem to be helping the loonie limit its losses against the USD for the time being.
Technical levels to watch for
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD pressures as Fed officials hold firm on rate policy
The Australian Dollar is on the defensive against the US Dollar, as Friday’s Asian session commences. On Thursday, the antipodean clocked losses of 0.21% against its counterpart, driven by Fed officials emphasizing they’re in no rush to ease policy. The AUD/USD trades around 0.6419.
EUR/USD extends its downside below 1.0650 on hawkish Fed remarks
The EUR/USD extends its downside around 1.0640 after retreating from weekly peaks of 1.0690 on Friday during the early Asian session. The hawkish comments from Federal Reserve officials provide some support to the US Dollar.
Gold price edges higher on risk-off mood hawkish Fed signals
Gold prices advanced late in the North American session on Thursday, underpinned by heightened geopolitical risks involving Iran and Israel. Federal Reserve officials delivered hawkish messages, triggering a jump in US Treasury yields, which boosted the Greenback.
Runes likely to have massive support after BRC-20 and Ordinals frenzy
With all eyes peeled on the halving, Bitcoin is the center of attention in the market. The pioneer cryptocurrency has had three narratives this year already, starting with the spot BTC exchange-traded funds, the recent all-time high of $73,777, and now the halving.
Billowing clouds of apprehension
Thursday marked the fifth consecutive session of decline for US stocks as optimism regarding multiple interest rate cuts by the Federal Reserve waned. The downturn in sentiment can be attributed to robust economic data releases, prompting traders to adjust their expectations for multiple rate cuts this year.