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The Canadian Dollar (CAD) shed some scant weight against the US Dollar (USD) on Thursday, backsliding a slim 0.05%. Despite the thin momentum, Thursday’s soft downside added to the Loonie’s 1.5% decline against the Greenback from last week’s 15-month highs that had the USD/CAD pair down to 1.3480 for the first time since October of 2024.

Daily digest market movers: Canadian Dollar backslides on Greenback leg-up

• The Canadian Dollar remains weak-footed against the US Dollar, down 0.4% in early February and pushing the USD/CAD pair back up into the 1.3700 region.
• US employment figures on Thursday were broadly negative, sparking a sour tone in global investor sentiment.
• Loonie markets will likely remain tepid until key Canadian labor market figures publish on Friday.
• Datawatchers await the latest Nonfarm Payrolls (NFP) data from the US, which has been pushed out to next Wednesday following the latest brief federal funding freeze.

USD/CAD daily chart

(Click on image to enlarge)

Technical Analysis

In the daily chart, USD/CAD trades at 1.3671. The pair sits beneath the 50- and 200-day EMAs, both sloping lower to reinforce a bearish bias. The 50-day EMA at 1.3779 caps near-term recoveries, while the 200-day EMA at 1.3862 marks a broader ceiling. Stochastic (14,5,5) has rebounded to 38.48, indicating momentum is stabilizing but remains below neutral. Bias stays heavy while price holds under the 50-day average.

EMA alignment keeps rallies corrective, and bears would retain control unless a daily close above the 50-day EMA materializes. A break higher could target the 200-day EMA, while failure to reclaim the 50-day gauge would maintain pressure on the prevailing downtrend. The oscillator’s upturn would need follow-through above the midline to confirm a stronger rebound; otherwise, sellers would be expected to fade bounces.

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