USD/CAD drops on stronger Canadian dollar despite positive NFP data

The US has added 339K jobs in May, beating estimates, but the USD/CAD pair stays relatively hot. The Canadian dollar gains momentum on a 1.70% surge in WTI crude oil prices. Uncertain Fed rate hike path in July overshadows USD’s future trajectory.

The USD/CAD pair registers modest losses after an outstanding jobs report in the United States would likely keep the Fed hitting the economy’s brakes, despite recent dovish comments supporting a pause. Nevertheless, the US dollar continued to weaken while the Canadian dollar strengthened. At the time of writing, the USD/CAD is trading at 1.3428, down 0.16%.

The USD/CAD pair stopped its fall at around the 200-day Exponential Moving Average (EMA) at 1.3417 on the release of May’s US Nonfarm Payrolls report, revealed by the US Department of Labor. The US economy created 339K jobs in the economy, crushing estimates of 190K, though the Unemployment Rate ticked higher to 3.7% from 3.4%, a 53-year low level.