The USD/CAD pair continues to trade below the 1.4000 level, reflecting cautious sentiment as traders await pivotal US labor market data. Despite recent strength in the US dollar, the currency pair has struggled to break higher, underscoring the market’s uncertainty about the Federal Reserve’s next move. Meanwhile, dovish commentary from Fed officials has tempered expectations of aggressive rate hikes, limiting the greenback’s upside potential.
Market participants are closely watching the release of US jobless claims and payroll data, which could offer fresh insights into economic resilience and the Fed’s monetary policy trajectory. While strong employment numbers could rekindle hawkish bets, any signs of labor market cooling may strengthen the case for a pause in tightening. This data-driven environment leaves USD/CAD vulnerable to significant volatility in the coming sessions.
