The Canadian dollar weakened versus its US counterpart across the previous week. The US dollar Canadian dollar exchange rate ended Friday’s session at 1.3052. The Canadian dollar is extending last week’s losses at the beginning of the new week.

Iran – US tensions, the signing of the US – Sino first phase trade deal and a downbeat US jobs report drove the greenback across the previous week. The US dollar bounced back after both the US and Iran indicated that they were not looking to elevate tensions further. However, the dollar slipped from weekly highs on Friday after the US jobs report was weaker than what analysts were expecting in both the headline jobs creation figure of the report and the wage growth component of the report.

This week the main focus is set to be on the signing of the US – China phase one trade deal on Wednesday. This could bring an optimistic backdrop to trading. Given that the weekend saw no escalation in geopolitical risk, optimism from the US – China trade deal is expected to overshadow unrest and risk of conflict in Iran.

There is no high impacting US data today. Tomorrow sees the release of US inflation data.

Jobs Data & Oil Prices

The commodity sensitive Canadian dollar slipped across the previous week in line with falling demand for oil. As tensions eased between the US and Iran and as US crude inventories unexpectedly increased, West Texas Intermediate slumped over 6% across the week, settling on Friday at US$59.04. US crude oil is declining further in early trade on Monday.

The stronger than forecast Canadian jobs report helped to cap losses from falling crude oil prices. The Canadian economy added 35,200 jobs in December, bouncing back from a dismal report in November. The increase in jobs came as the unemployment rate fell to 5.6%, down from 5.9% in November, when the country lost 71,200 jobs. The stronger report helped quell concerns over the state of the Canadian labour market.

There is no high impacting Canadian data due to be released this week. This means that the value of the Loonie could be closely tied to fluctuations in oil. is a news site only and not a currency trading platform. is a site operated by TransferWise Inc. (“We”, “Us”), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of TransferWise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on do not represent our views.