The Canadian Dollar (CAD) is little changed against the generally firmer US Dollar (USD), Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

Gold (XAU/USD) holds steady on Friday as markets digest mixed US labour data. At the time of writing, XAU/USD trades around $4,490, after bouncing from the $4,400 region on Thursday.

EUR/GBP trades around 0.8670 on Friday at the time of writing, virtually unchanged on the day, after failing to establish itself above 0.8690 on Thursday.

The Unemployment Rate in Canada rose to 6.8% in December from 6.5% in November, the data published by Statistics Canada showed on Friday. This reading came in worse than the market expectation of 6.6%. On a monthly basis, the Net Change in Employment was +8.2K, compared to analysts' estimate of -5K.

United States Building Permits Change increased to 6.4% in September from previous -3.7%

United States Housing Starts (MoM): 1.306M (September) vs previous 1.307M

Nonfarm Payrolls (NFP) in the United States (US) rose by 50,000 in December, the US Bureau of Labor Statistics (BLS) reported on Friday. This reading followed November's 56,000 (revised from 64,000) and came in below the market expectation for an increase of 60,000.

United States Building Permits (MoM): 1.415M (September) vs 1.312M

West Texas Intermediate (WTI) trades with a negative bias on Friday after posting solid gains the previous day, as traders continue to assess the implications of increased US oversight of Venezuelan Oil following recent military action in Caracas.

Canada Net Change in Employment came in at 8.2K, above forecasts (-5K) in December

United States Housing Starts (MoM) dipped from previous 1.307M to 1.246M in September

United States Average Hourly Earnings (YoY) came in at 3.8%, above forecasts (3.6%) in December

United States Average Weekly Hours came in at 34.2 below forecasts (34.3) in December

United States Building Permits (MoM) above expectations (1.35M) in October: Actual (1.412M)

United States Labor Force Participation Rate declined to 62.4% in December from previous 62.5%

United States Housing Starts Change increased to -4.6% in September from previous -8.5%

United States Average Hourly Earnings (MoM) meets expectations (0.3%) in December

United States U6 Underemployment Rate increased to 13% in December from previous -5%

United States Unemployment Rate below forecasts (4.5%) in December: Actual (4.4%)

United States Nonfarm Payrolls registered at 50K, below expectations (60K) in December

United States Housing Starts (MoM) came in at 1.246M, below expectations (1.33M) in October

Canada Participation Rate up to 65.4% in December from previous 65.1%

Canada Unemployment Rate came in at 6.8%, above expectations (6.6%) in December

US sanctions and blockades contributed to a decline in Venezuelan Oil production to 830,000 barrels per day in December, about 130,000 barrels lower than November, while overall OPEC production remained stable at around 29 million barrels per day, Commerzbank's commodity analyst Barbara Lambrecht no

The British Pound (GBP) trades on the front foot against the Japanese Yen (JPY) on Friday, as the Yen weakens broadly amid growing frictions between Japan and China.

USD/CNH remains under 7.0000 as China’s December inflation data showed headline CPI rising to 0.8% y/y, the highest since February 2023, while core CPI stayed at 1.2% for a third consecutive month, and PPI printed -1.9%, indicating ongoing deflationary pressure, BBH FX analysts report.

Oil prices came under pressure in the middle of the week. This was triggered by a statement by US President Trump on his social media platform that the US would buy 30-50 million barrels of sanctioned Oil from Venezuela.

The Canadian Dollar (USD) is under pressure at the start of 2026, with USD/CAD approaching 1.3900 ahead of today’s December labor force survey, BBH FX analysts report.

EUR/USD remains depressed near monthly lows of 1.1640 at the time of writing, on track to a 0.6% depreciation this week.

The French government passed emergency legislation late last month to roll over the 2025 budget into 2026, ensuring that spending, tax collection and debt issuance are not disrupted this month.