{"id":58434,"date":"2026-02-12T23:38:25","date_gmt":"2026-02-13T03:38:25","guid":{"rendered":"https:\/\/stockmarketwatch.com\/stock-market-news\/canadian-dollar-under-pressure-hovers-near-1-3600-as-robust-us-jobs-data-tempers-fed-rate-cut-speculation\/58434\/"},"modified":"2026-02-12T23:38:25","modified_gmt":"2026-02-13T03:38:25","slug":"canadian-dollar-under-pressure-hovers-near-1-3600-as-robust-us-jobs-data-tempers-fed-rate-cut-speculation","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/canadian-dollar-under-pressure-hovers-near-1-3600-as-robust-us-jobs-data-tempers-fed-rate-cut-speculation\/58434\/","title":{"rendered":"Canadian Dollar Under Pressure, Hovers Near 1.3600 as Robust US Jobs Data Tempers Fed Rate Cut Speculation"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>USD\/CAD Holds Near 1.3600:<\/strong> The Canadian Dollar is maintaining its losses against its US counterpart, with the <strong>USD\/CAD<\/strong> currency pair trading near the <strong>1.3600<\/strong> level.<\/li>\n<li><strong>Strong US Jobs Report:<\/strong> The primary driver for the US Dollar&#39;s strength was a January Nonfarm Payrolls (NFP) report that significantly beat expectations, showing the addition of <strong>130,000<\/strong> jobs against a market consensus of <strong>70,000<\/strong>.<\/li>\n<li><strong>Fed Rate Cut Hopes Dim:<\/strong> This robust employment data has diminished the likelihood of the <strong>Federal Reserve<\/strong> implementing interest rate cuts in the near future, providing strong support for the greenback.<\/li>\n<li><strong>Oil Prices Weigh on Loonie:<\/strong> A decline in crude oil prices is exerting additional downward pressure on the commodity-linked Canadian Dollar.<\/li>\n<\/ul>\n<h2>US Labor Market Strength Fuels Dollar Rally<\/h2>\n<p>The <strong>Canadian Dollar (CAD)<\/strong> remained on the defensive Friday, struggling to gain ground against a bolstered <strong>US Dollar (USD)<\/strong>. The <strong>USD\/CAD<\/strong> pair was seen trading around the <strong>1.3615<\/strong> mark, as markets digested a surprisingly strong US employment report that has altered expectations for the <strong>Federal Reserve&#39;s<\/strong> monetary policy path.<\/p>\n<p>The catalyst for the move was data indicating the US economy added <strong>130,000<\/strong> jobs in January, far exceeding forecasts. In conjunction, the US unemployment rate ticked down to <strong>4.3%<\/strong>. This signal of a resilient labor market suggests the <strong>Fed<\/strong> has less incentive to lower interest rates by mid-year, a view that has fueled a shift in capital flows towards the US Dollar.<\/p>\n<h2>Diverging Central Bank Outlooks<\/h2>\n<p>The robust American jobs data highlights a growing divergence in monetary policy between the <strong>Federal Reserve<\/strong> and the <strong>Bank of Canada (BoC)<\/strong>. With the US economy showing persistent strength, the odds of the <strong>Fed<\/strong> holding rates steady at its next meeting have surged to nearly <strong>92%<\/strong>, according to the CME FedWatch tool. This contrasts with the outlook for other central banks, making US-denominated assets more attractive to investors.<\/p>\n<p>Compounding the pressure on the &quot;Loonie&quot; is a recent drop in crude oil prices. As Canada is a major exporter of oil, lower prices for the commodity typically have a negative impact on the nation&#39;s currency.<\/p>\n<h2>Market Focus Shifts to Inflation Data<\/h2>\n<p>Looking ahead, currency traders are turning their attention to the upcoming <strong>US Consumer Price Index (CPI)<\/strong> report. This inflation data will be a critical piece of the puzzle for the <strong>Fed<\/strong> and could introduce further volatility into the <strong>USD\/CAD<\/strong> pair as the market continues to refine its interest rate expectations.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways USD\/CAD Holds Near 1.3600: The Canadian Dollar is maintaining its losses against its US counterpart, with the USD\/CAD 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