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USD/CAD rises as US Dollar gains on mixed labor data and Fed outlook

GrowingPool Analysis TeamNovember 20, 2025 at 04:54 PM

The US Dollar gained ground against the Canadian Dollar on Thursday, pushing the USD/CAD pair higher. The Greenback found support as investors recalibrated their expectations for Federal Reserve monetary policy, scaling back bets on an imminent interest rate cut in December. This shift in sentiment provided a firm foundation for the USD, placing the commodity-linked Loonie on the defensive during the trading session.

Mixed labor market data from the United States contributed to the USD's strength, reinforcing the view that the Fed may maintain its restrictive policy stance for longer. The Canadian Dollar, often sensitive to shifts in broader market risk appetite and crude oil prices, struggled to find momentum. The exchange rate's movement reflects ongoing reassessments of the interest rate divergence between the Federal Reserve and the Bank of Canada.

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Data Source: GrowingPool Analysis Team Updated: 2025-11-20 16:54

Disclaimer: This article is for reference only and does not constitute investment advice. Forex trading involves risks; please make decisions carefully.

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