Canadian Dollar holds steady as US government reopens, ADP data disappoints

💡 DMK Insight

The CAD’s stability near 1.3700 against the USD signals cautious optimism amid US economic adjustments. With the end of the partial US government shutdown, traders are recalibrating their expectations. The soft private payrolls report suggests potential weakness in the US labor market, which could influence the Federal Reserve’s monetary policy decisions. For CAD traders, this stability might present a short-term opportunity, especially if the USD weakens further due to disappointing economic indicators. Keep an eye on the 1.3650 support level; a break below could trigger further CAD strength. Conversely, if the USD gains traction, resistance around 1.3750 might come into play. It’s worth noting that while the CAD is holding steady, the broader market sentiment remains fragile. If upcoming economic data from Canada shows resilience, it could bolster the CAD further, but any signs of weakness could lead to a quick reversal. Watch for the next US jobs report and Canadian GDP figures as key indicators that could sway this pair significantly.