CAD flows: Little change on employment report but risks to CAD downside

A mixed Canadian employment report with employment rising a little less than expected but the unemployment rate falling. Market reaction has been minimal as a result, with the general USD direction still the dominant factor. The risks do still look to be to the USD/CAD upside given the current wide yield spread and the risks of higher US rates due to lower taxes and higher tariffs, but speculative positioning is already very short CAD and 1.40 is a significant psychological barrier, so gains will be hard to achieve without concrete evidence of policy action.