The EUR/CAD pair continued its upward momentum for a third consecutive session on Friday, trading slightly higher near 1.6115 during the late Asian hours. The move comes as traders await Canada’s August employment data, scheduled for release at 12:30 GMT.
Markets anticipate the report will show a modest increase of 7.5K jobs, following July’s sharp decline of 40.8K positions. The unemployment rate is projected to rise to 7%, the highest level since October 2021. Signs of further weakness in the labor market could strengthen expectations for additional monetary easing from the Bank of Canada (BoC).
The BoC has left its benchmark rate unchanged at 2.75% across its last three meetings. According to a Reuters survey, policymakers are widely expected to deliver a 25 basis-point cut in September, bringing the rate down to 2.50%.
On the European side, the Euro (EUR) remains steady as investors largely believe the European Central Bank (ECB) will maintain its current policy stance at next week’s meeting. A Reuters poll conducted between September 1–4 showed that most economists expect no rate change, with inflation seen broadly under control and the region’s economic outlook relatively stable.
