The USD/CAD pair continues its downward move, trading around 1.4010 during Monday’s European session. The Canadian Dollar (CAD) gains support from robust domestic labor market data, boosting expectations that the Bank of Canada (BoC) may hold off further policy easing.

Statistics Canada reported that the Unemployment Rate fell to 6.9% in October from 7.1% in September, while Net Employment increased by 66.6K jobs, surpassing expectations. These positive economic indicators reinforce the CAD’s strength, particularly against a subdued US Dollar (USD).

The commodity-linked CAD is further supported by rising Oil prices, with WTI crude trading near $60.20 per barrel. Optimism that the US government shutdown may soon end is lifting demand for oil, indirectly bolstering the Canadian currency. The Senate recently passed the first phase of a funding deal, providing near-term support to risk sentiment and limiting USD strength.

Immediate technical support for USD/CAD lies near the 1.4000 psychological level. If the pair breaches this zone, further downside toward 1.3950 could be tested. On the upside, resistance emerges around 1.4060–1.4080, marking short-term recovery levels should the USD regain momentum.

Overall, USD/CAD remains pressured as the BoC’s cautious stance, rising Oil prices, and a still-weak Dollar shape the near-term outlook. Traders should monitor US fiscal developments and crude markets for potential volatility triggers.