Strong Canadian employment data boosted the Canadian dollar, while the US dollar retreated after an initial surge, causing the USD/CAD pair to return to range-bound trading.
2025-11-10 13:30:20
The USD/CAD pair traded around 1.4030 in early Asian trading, down about 0.12%, mainly driven by strong Canadian employment data. Statistics Canada reported that 66,600 jobs were added in October, far exceeding the expected -2,500, while September saw 60,400 new jobs added.
The unemployment rate fell to 6.9% from 7.1% in the previous two months, the lowest level since July 2021. This indicates continued improvement in the Canadian labor market, providing significant support for the Canadian dollar.
Positive employment data is expected to ease market concerns about a recent interest rate cut by the Bank of Canada (BoC), making the Canadian dollar strong in the foreign exchange market.
USD/CAD faced significant selling pressure during the Asian trading session. The Canadian dollar performed strongly against almost all major currencies except for the Australian dollar and the New Zealand dollar, with a particularly strong performance against the Japanese yen.
Regarding the US dollar, its overall performance was relatively stable as the US government shutdown may be nearing its end and market expectations for US fiscal and consumer prospects have improved.
The Senate is expected to vote on Sunday to advance the short-term funding bill passed by the House of Representatives. This bill would be tied to three year-round funding bills to keep the government running until January 2026 and boost U.S. consumer confidence affected by the shutdown.
Previously, the University of Michigan's preliminary consumer confidence index showed a drop to 50.3 in November, a three-and-a-half-year low, highlighting the pressure on consumer confidence, but progress in U.S. government funding may alleviate this pressure.
From a technical perspective, the USD/CAD daily chart shows short-term consolidation around 1.4030, with support around 1.4000 and resistance at 1.4060. Overall, the trend is weak, with the Canadian dollar remaining strong and the US dollar under pressure in the short term.
Editor's Note:
The current USD/CAD pair is showing a pattern of a stronger Canadian dollar versus a weakening US dollar. Canadian employment data far exceeded expectations, with the unemployment rate falling to 6.9%. Market expectations for a near-term interest rate hike or cut by the BoC have been adjusted, providing support for the Canadian dollar.
The dollar remained stable as the US government shutdown was expected to end, but the potential risk of weak consumer confidence remained.
The unemployment rate fell to 6.9% from 7.1% in the previous two months, the lowest level since July 2021. This indicates continued improvement in the Canadian labor market, providing significant support for the Canadian dollar.
Positive employment data is expected to ease market concerns about a recent interest rate cut by the Bank of Canada (BoC), making the Canadian dollar strong in the foreign exchange market.USD/CAD faced significant selling pressure during the Asian trading session. The Canadian dollar performed strongly against almost all major currencies except for the Australian dollar and the New Zealand dollar, with a particularly strong performance against the Japanese yen.
Regarding the US dollar, its overall performance was relatively stable as the US government shutdown may be nearing its end and market expectations for US fiscal and consumer prospects have improved.
The Senate is expected to vote on Sunday to advance the short-term funding bill passed by the House of Representatives. This bill would be tied to three year-round funding bills to keep the government running until January 2026 and boost U.S. consumer confidence affected by the shutdown.
Previously, the University of Michigan's preliminary consumer confidence index showed a drop to 50.3 in November, a three-and-a-half-year low, highlighting the pressure on consumer confidence, but progress in U.S. government funding may alleviate this pressure.
From a technical perspective, the USD/CAD daily chart shows short-term consolidation around 1.4030, with support around 1.4000 and resistance at 1.4060. Overall, the trend is weak, with the Canadian dollar remaining strong and the US dollar under pressure in the short term.
Editor's Note:
The current USD/CAD pair is showing a pattern of a stronger Canadian dollar versus a weakening US dollar. Canadian employment data far exceeded expectations, with the unemployment rate falling to 6.9%. Market expectations for a near-term interest rate hike or cut by the BoC have been adjusted, providing support for the Canadian dollar.
The dollar remained stable as the US government shutdown was expected to end, but the potential risk of weak consumer confidence remained.
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