USD/CAD Holds Near 1.3600 as Strong US Jobs Data Dampens Rate Cut Bets

USD/CAD remained elevated near the 1.3600 level on Friday as the Canadian Dollar struggled to recover against a strengthening US Dollar. The pair's upward bias was reinforced by robust US employment data, which tempered market expectations for aggressive Federal Reserve rate cuts in the near term. Strong US labor market figures underscored the resilience of the American economy, providing a tailwind for the greenback while leaving the Canadian Dollar on the defensive. The divergence in monetary policy expectations between the Bank of Canada and the Federal Reserve continues to weigh on CAD, as traders reassess the timing and magnitude of potential rate reductions. From a technical perspective, the 1.3600 handle represents a key psychological level, with sustained trading above it potentially opening the door toward the 1.3650 resistance zone. On the downside, support is seen near 1.3550. Traders should monitor upcoming Canadian economic releases and any shifts in Fed rhetoric for further directional cues on the pair.