Daily Foreign Exchange Update for May 6, 2026

Spot Rates

• USDCAD spot rate: 1.3624 - 1.3629 (as at 8:45am PST)
• Asia: 1.3583 to 1.3608
• Europe: 1.3578 to 1.3618
• North America: 1.3612 to 1.3626

Technical Support / Resistance

• S2 1.3510
• S1 1.3550
• R1 1.3650
• R2 1.3700

Key Economic Data Releases:

• Canada ivey PMI: 57.7 exp 49.9 prev 49.7
• U.S. ADP employment change: 109k exp 99k prev 61k

Important events we're watching this week:

• May 7, USA, Challenger job cuts
• May 8, Canada, Net change in employment
• May 8, USA, Non-farm payrolls

Market Spotlight

USD/CAD struggles for direction on Wednesday as renewed optimism surrounding a potential US-Iran peace deal pressures the USD, while falling Oil prices weigh on the commodity-linked CAD. At the time of writing, the pair is trading around 1.3620, up 0.13% on the day after hitting an intraday low of 1.3578. Axios reported earlier in the day that Washington and Tehran are moving closer to a one-page memorandum of understanding (MOU) aimed at ending the war and establishing a framework for more detailed nuclear negotiations. The report said the proposed deal could include Iran pausing nuclear enrichment, while the US would lift sanctions and release billions of Dollars in frozen Iranian funds. Both sides are also expected to end the blockade around the Strait of Hormuz.

Following the news, both the USD and Oil prices slumped, with WTI crude falling more than 10% at one point before trimming some of its losses. The CAD remains highly sensitive to Oil price movements due to Canada’s status as a major crude exporter. Despite the renewed optimism, uncertainty remains elevated as previous peace talks and proposals between Washington and Tehran failed to produce a breakthrough. US President Donald Trump warned that if Iran does not agree to the terms under discussion, military action could resume at a “much higher level and intensity” than before. Trump also said the Strait of Hormuz would be reopened to all shipping, including Iran, if an agreement is reached. This lingering uncertainty is helping limit deeper losses in the USD, with the US Dollar Index showing signs of stabilization after its earlier decline. The index, which tracks the Greenback’s value against a basket of six major currencies, is trading around 97.90 after hitting an intraday low of 97.62, though it remains down nearly 0.60% on the day.

• Currently, the TSX is up 1.27% while the DJIA is up 1.08%.
• EURCAD is up 0.50% trading between 1.5925 and 1.6029.
• GBPCAD is up 0.36% trading between 1.8442 and 1.8549.
• JPYCAD is up 0.99% trading between 0.00861 and 0.00872.
• Gold is up 2.10% trading between $4,588 - $4,723USD/oz.
• Silver has is up 4.37% trading between $73.59 - $77.81USD/oz.
• Oil (WTI crude) is down 7.69% trading between $88.72 and $101.34.