USD/CAD Falls 0.8% as CAD Rebounds Despite Weak Jobs Data

USD/CAD has declined 0.8% to 1.3520 as the Canadian dollar stages an unexpected recovery despite Friday's disappointing employment report showing a loss of 2,800 jobs versus expectations of +25,000 gains. The loonie's resilience stems from shifting market focus to potential Federal Reserve dovishness rather than Bank of Canada rate cut speculation. Oil prices have also supported CAD, with WTI crude rising 1.2% to $68.50 per barrel. Technical analysis shows USD/CAD breaking below the key 1.3550 support level, opening the path toward 1.3480. The pair had initially spiked to 1.3620 following the weak Canadian jobs data but reversed sharply as USD weakness dominated. Traders are now positioning for next week's Fed communications, with market pricing showing 75% probability of a September rate cut. The CAD's recovery despite domestic weakness highlights the dominant influence of US monetary policy expectations on the pair.