As we close out the week, market activity remains steady, with notable moves in response to the latest employment data.

Key highlights include:

Market Overview

• EUR/USD: Down 0.11%, showing modest dollar strength.
• GBP/USD: Sterling is relatively flat but has edged up 0.08%.
• USD/CAD: The Canadian dollar is currently down 0.09% following the release of U.S. and Canadian nonfarm payroll data.

Employment Data

• U.S. vs. Canada Canada: Employment remains robust, with a significant increase of 76,000 jobs, far exceeding the forecasted 25,000. This strong labor market continues to support the Canadian dollar.
• U.S.: Nonfarm payrolls were softer than expected, coming in at 143,000, below the expected 175,000. However, the previous month's number was revised up to 307,000 from 256,000, providing some support to the overall employment outlook.

A Week of Volatility: Tariffs & Trade Developments

This has been an incredibly eventful week, feeling more like a month in terms of market movement.

Key developments included:

• Tariff Uncertainty: The week began with concerns over U.S. tariff policies.
• Temporary Agreements: A 30-day delay on proposed tariffs for Mexican and Canadian imports provided some relief, leading to a rebound in both the Mexican peso and the Canadian dollar.
• Market Reaction: These shifting policies drove volatility throughout the week, with currency markets responding to the evolving trade narrative.

Looking Ahead

With nonfarm payroll data now behind us and no immediate catalysts on the horizon, markets may see muted trading into the weekend. After a hectic few days, traders will likely welcome a period of stability before reassessing next week’s developments.

Conclusion

This week has been marked by intense fluctuations driven by trade policies, economic data, and shifting sentiment. With tariff-related uncertainty easing and employment figures providing mixed signals, the market may enter a brief consolidation phase before the next wave of key events.

Enjoy the weekend and stay tuned for more updates next week!