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US Dollar Edges Lower on Disappointing Jobs Data; Canadian Dollar Steadies Ahead of Employment Report


06.05.2024
US Dollar Edges Lower on Disappointing Jobs Data; Canadian Dollar Steadies Ahead of Employment Report

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

US Dollar        1.3650-1.3750

Euro                 1.4700-1.4800

Sterling            1.7150-1.7250

 

WTI Oil (opening level) $78.66

 

The US Dollar index is marginally weaker to start the week as a softer than expected US Jobs report on Friday have left some stock traders hoping that the economic conditions for an interest rate cut are starting to unfold in the economy. The expectation was for 240K jobs to have been created last month but only 175K were actually created so a little less than expected. The US economy is still quite strong so I don't think any interest rate cut is imminent but another weak employment report may set the stage for a move by the Fed in the late summer or early fall.

 

The Canadian Dollar picked up a little strength against the weaker US Dollar but lost a little ground to the other currencies. USD.CAD opens the week near the 1.3675 (0.7313) level so it is still range trading and should continue to be vulnerable to further weakness. The highlight of the week for the Loonie will be Friday's Employment report, another poor report will further highlight the poor state of the economy may push the Loonie lower.

 

A quiet week on the calendar for the US Dollar, after a strong close to the week US stocks are poised for a positive opening but should remain volatile as the markets still try to digest the timing of the first interest rate cut. Look for the US Dollar to remain supported.



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