USDCAD Under Pressure

Omar Ayoub

June 5, 2025

Several negative data points were released this week for the US dollar, led by the ADP Non-Farm Employment Change, which posted its lowest reading since March 2023 at just 37K. Additionally, the Non-Manufacturing PMI fell below the key 50 level, recording 49.9. These readings add further downside pressure on the US dollar. On the other hand, the Bank of Canada kept interest rates steady at 2.75%.

Technical Outlook on the Daily Chart

Figure 1: USDCAD Daily Timeframe, TradingView

The US Dollar against the Canadian Dollar (USDCAD) is trading in a general downtrend, forming lower highs and lower lows, confirming the bearish momentum.

Traders should monitor any corrective rise toward the 1.38164 level as a potential opportunity to continue the downtrend and target 1.36015.

However, a break and daily candle close above 1.38611 would invalidate the bearish scenario.

Note:

Markets are anticipating the US and Canadian employment data due on Friday, June 6, 2025. Significant volatility is expected upon their release, especially for the USDCAD pair.

Disclaimer: The content published above has been prepared by CFI for informational purposes only and should not be considered as investment advice. Any view expressed does not constitute a personal recommendation or solicitation to buy or sell. The information provided does not have regard to the specific investment objectives, financial situation, and needs of any specific person who may receive it, and is not held out as independent investment research and may have been acted upon by persons connected with CFI. Market data is derived from independent sources believed to be reliable, however, CFI makes no guarantee of its accuracy or completeness, and accepts no responsibility for any consequence of its use by recipients.

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