USD/CAD Rises as Investors Await Key Labor Market Data

The USD/CAD exchange rate is trading marginally lower against the US Dollar on Friday, with the pair edging up to near 1.4023 in the European trading session.

Investors are awaiting labor market data for July from both the United States and Canada, which will provide fresh cues about the Federal Reserve's and Bank of Canada's monetary policy outlook.

Danske Bank analysts forecast that the US July Jobs Report will show nonfarm payrolls at +70k, with the unemployment rate remaining unchanged at 4.2%, and average hourly earnings rising by 0.3% month-over-month seasonally adjusted.

The Canadian labor market report is expected to show a slightly lower number of new jobs created, at around 15K, compared to June's 18.2K.