After Big USD Move, USD/CAD Now Pulls Back

Today's expected range for the Canadian Dollar against the major currencies:

US Dollar        1.3560-1.3800

Euro                 1.5500-1.5730

Sterling            1.8440-1.8660

WTI Oil (opening level) $64.83

The CAD/USD is opening at 1.3686 ( 0.7307 )

USD/CAD retraces its gains from the previous session, trading around 1.3680-90 overnight. The pair edges lower as the USD corrects downward after registering approximately 0.50% gains on Friday following US jobs data for May. The stronger-than-expected data raised the chances that the Federal Reserve will keep its benchmark interest rate unchanged at its next two monetary policy meetings.

The US Bureau of Labor Statistics reported that US Nonfarm Payrolls climbed by 139,000 in May compared to April’s 147,000 increase (revised from 177,000). This reading came in above the market consensus of 130,000. Moreover, the Unemployment Rate held steady at 4.2% and the Average Hourly Earnings remained unchanged at 3.9%, both readings came in stronger than the market expectation.

The US Dollar may gain ground amid easing trade-war jitters. US President Donald Trump and China’s Xi Jinping spoke and agreed on Thursday that officials from both sides would soon resume trade negotiations aimed at ending the trade war. US Treasury Secretary Scott Bessent and two other Trump administration officials are set to meet with Chinese officials on Monday.