Canadian Dollar gains ground as jobs data lifts Loonie

💡 DMK Insight

The CAD’s half-percent surge against the USD signals a pivotal moment for traders: With the unemployment rate hitting 6.5%, the lowest since September 2024, this data could fuel expectations of tighter monetary policy from the Bank of Canada. A strong labor market often leads to increased consumer spending, which can bolster economic growth and strengthen the CAD further. Traders should watch for potential resistance levels around recent highs, as a sustained rally could trigger more aggressive buying. However, it’s worth noting that the USD’s own economic indicators, including inflation and Fed policy, could counterbalance CAD gains. If the USD shows resilience, the CAD might face headwinds. Keep an eye on the upcoming economic releases from both countries, as they could provide further clarity on the direction of this currency pair. The next key level to monitor for CAD/USD is the recent high, which could act as a psychological barrier for traders looking to capitalize on this momentum.