USD/CAD extends downside near 1.3750, US Initial Jobless Claims and geopolitical risks eyed

Mitrade
coverImg
Source: DepositPhotos

■  USD/CAD trades on a softer note around 1.3755 in Thursday’s early Asian session. 

■  BoC’s governing council saw the risk that consumer spending could be significantly weaker than expected in 2025 and 2026. 

■  Traders will watch the weekly US Initial Jobless Claims on Thursday for some hints about the employment market outlook. 


The USD/CAD pair extends its decline to near 1.3755 during the early Asian session on Thursday. The Canadian Dollar (CAD) is poised to perform well this week despite the lack of top-tier economic data released earlier this week. On Friday, traders will closely monitor the Canadian employment report for July. 

The Bank of Canada (BoC) minutes from a recent meeting released Wednesday showed that members saw a risk that consumer spending would be much weaker than expected in 2025 and 2026. The minutes observed that labour market pressures had eased and that the economy was evolving largely as expected, although job creation has been slower in the working-age population. 

According to the deliberations, some members were more focused on the downside risks to inflation posed by a weak economy and restrictive monetary policy, while others emphasized the upside risks of wage growth and the possibility of a housing market rebound. 

The Canadian employment data will be published on Friday. The Canadian economy is expected to add 22.5K jobs in July, while the Unemployment Rate is estimated to rise to 6.5% in the same report period from 6.4% in June. 

Meanwhile, the rising geopolitical tensions in the Middle East and another fall in US weekly crude oil inventories boost crude oil prices and lift the commodity-linked Loonie. It's worth noting that higher oil prices generally support the CAD lower as Canada is the leading exporter of Oil to the United States (US).

On the USD’s front, investors expect the Federal Reserve (Fed) to take more aggressive action for the interest rate before it misses the chance. Markets are pricing in a strong likelihood of that half-point rate cut in September. The expectation of deeper rate cuts might cap the upside for the US Dollar in the near term. 

Traders will keep an eye on the weekly US Initial Jobless Claims on Thursday. TD Securities analysts said, “Jobless claims on Thursday is something markets will be looking for confirmation of slowing economic numbers, particularly employment.”

Read more

  • Gold rises above $4,050 ahead of Fed rate decision
  • US Sept. PCE Preview: Inflation May Heat Up Again, How Will US Stocks, the Dollar, and Gold React?
  • Bitcoin is back above $80,000 — but 75% of the bounce was shorts, not buyers
  • Bitcoin Price Forecast: Drops Below $80,000 in Fifth Straight Loss, May Test $75,000 as FOMC Meeting Approaches
  • * The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

    goTop
    quote
    Related Articles
    placeholder
    Today’s Market Recap: Fed Holds Rates Steady, Memory Chip Sector Surges, Micron Up Over 5%, SanDisk Up Over 7%, Google Drops Nearly 10% After HoursOn October 28, Eastern Time, the three major U.S. stock indices closed slightly higher across the board. The Federal Reserve announced it would keep interest rates u
    Author  TradingKey
    8 hours ago
    On October 28, Eastern Time, the three major U.S. stock indices closed slightly higher across the board. The Federal Reserve announced it would keep interest rates u
    placeholder
    US Sept. PCE Preview: Inflation May Heat Up Again, How Will US Stocks, the Dollar, and Gold React?This Thursday (October 29), the US will release the September Personal Consumption Expenditures (PCE) price index. However, since the PCE report will be released after the Federal Reserve
    Author  TradingKey
    Yesterday 09: 59
    This Thursday (October 29), the US will release the September Personal Consumption Expenditures (PCE) price index. However, since the PCE report will be released after the Federal Reserve
    placeholder
    Australian Dollar trades near monthly high, above 0.7000 as hawkish RBA offsets USD uptickThe AUD/USD pair trades with a positive bias for the fourth straight day, holding steady above the 0.7000 psychological mark during the Asian session on Wednesday and flirting with the monthly high it touched the previous day.
    Author  FXStreet
    Oct 21, Wed
    The AUD/USD pair trades with a positive bias for the fourth straight day, holding steady above the 0.7000 psychological mark during the Asian session on Wednesday and flirting with the monthly high it touched the previous day.
    placeholder
    US September PPI Preview: Will Inflation Surprise Again? US Stocks, Dollar and Gold Face Key Test On October 15, US Eastern Time, the U.S. is set to release the September Producer Price Index (PPI). The September CPI released this Wednesday was notably higher than market expectations,
    Author  TradingKey
    Oct 15, Thu
    On October 15, US Eastern Time, the U.S. is set to release the September Producer Price Index (PPI). The September CPI released this Wednesday was notably higher than market expectations,
    placeholder
    Yen inches toward 159 as Tokyo reopens — where is the line in the sand before 160?USD/JPY traded around 158.5 on Tuesday after Monday's 158.60 close — the highest since September 24 — as Tokyo reopened and the market re-focused on two dates dominating the yen calendar: the G20 finance ministers' meeting in Bangkok on October 15 and the Bank of Japan's October 30 decision. Here are the three forces leaning on the yen, the positioning picture, and the scenarios into Wednesday's US CPI.
    Author  Irene Q.
    Oct 13, Tue
    USD/JPY traded around 158.5 on Tuesday after Monday's 158.60 close — the highest since September 24 — as Tokyo reopened and the market re-focused on two dates dominating the yen calendar: the G20 finance ministers' meeting in Bangkok on October 15 and the Bank of Japan's October 30 decision. Here are the three forces leaning on the yen, the positioning picture, and the scenarios into Wednesday's US CPI.
    Live Quotes
    Name / SymbolChart% Change / Price
    USDCAD
    USDCAD
    0.00%0.00
    USDOLLAR-F
    USDOLLAR-F
    0.00%0.00

    Forex Related Articles

    • How to Identify Forex Scams? Warning Signs Every Trader Should Know
    • Stop Loss: Your Savior In The Market
    • Is Mitrade a Legit Broker? A Transparent Review of Security, Platform, and Trading Conditions (2026 Updated)
    • Is Mitrade Right for You? A Complete Guide on How to Start Trading CFDs in 5 Steps
    • 6 Leading ASIC-Regulated Forex Trading Platforms&Apps in Australia (2026 Update)
    • Forex Trading In Malaysia - Top 10 Forex Brokers for Malaysia: Regulated & Trader-Friendly Picks

    Click to view more