NFP miss sends the USD tumbling — North American Mid-Week Market Update

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Log in to our mid-week North American Markets overview where we look at the NA Indices and currencies.

After a relatively calm conclusion to July trading, Markets found some heightened volatility to start August on a high note.

A streak of positive US data (including PMIs, CPI and a nice July PPI), Markets did not take the miss in Friday's Non-Farm Payrolls lightly.

The US Dollar had been on a roll, going from 96.40 lows in the beginning of the past month to breaching the 100.00 psychological level.

The missed US Data changed things sharply, with the Dollar Index currently trading closer to the 98.00 level, almost a 2% correction from its 100.20 August 1st top.

US Indices had been hurt initially but are showing strong resilience in the beginning of this week.

Watch the Monday highs in indices, currently close to be tested:

• if they break higher, Markets will account for a higher influence from Cuts and US exceptionalist policies
• If they mark a double top here, Markets will start to show more concerns for a potential US and global slowdown

In the meantime, Canadian Equity markets have been performing strong from the most recent supporting policies from Mark Carney to help Canadian business withhold the tariffs.

Markets seem to disregard the US-Canada trade talks in limbo.

Read More: US oil rallies but shows indecision within established range

North-American Indices Performance

North American Top Indices performance since last Monday – August 6, 2025 – Source: TradingView

Dollar Index 8H Chart review

US Dollar Index 8H Chart, August 6, 2025 – Source: TradingView

The Dollar Index has started another wave of correction after a 3-session consolidation between 98.60 to 99.00.

The ongoing selling is leading towards the 98.00 Support that served as a springboard towards the highs after last week.

Momentum is moving in bearish territory particularly after moving below both the MA 50 and 200.

Monitor the reactions at the support.

US Dollar Mid-Week Performance vs Majors

USD vs other Majors, August 6, 2025 - Source: TradingView.

The US Dollar is getting hammered particularly against the Yen and the Euro.

CAD Mid-Week Performance vs Majors

CAD vs other Majors, August 6, 2025 - Source: TradingView.

The Loonie is getting dragged down by the down performance in the US Dollar amid the geographic trends in the currency markets.

The CAD is still holding fairly well against the NZD and CHF showing particular weakness since the beginning of the week.

Intraday Technical Levels for the USD/CAD

USDCAD 4H Chart, August 6, 2025 – Source: TradingView

The pair broke to the higher side last week but sellers are trying to push prices back towards the range.

Both the 50 and 200 period Moving averages are acting as immediate support at the Pivot Zone which previously served as Resistance during the June-July Consolidation.

Levels to place on your charts:

Support Levels:

• range highs turned pivot 1.3750 – Confluence with 4H MA 50 and 200
• Higher Timeframe Key support Zone 1.36 to 1.3660
• 1.3540 (2025 Lows)

Resistance Levels:

• 1.3850 Main Resistance
• 1.38 intermediate Resistance

US and Canada Economic Calendar for the Rest of the Week

US and Canadian Data for the rest of the week, MarketPulse Economic Calendar

The Calendar is fairly packed for Canada towards the end of the week.

Markets expect Ivey PMIs for Canada tomorrow and the Monthly jobs number on Friday.

US data will be a tid-bit lighted with Jobless claims tomorrow and University of Michigan data on Friday.


Safe Trades!

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