Key USD/CAD Expiries

For USD/CAD, options expire at these levels: 1.3860 (US$743.8 million), 1.3850 (US$556 million), and 1.3730 (US$495 million). There are also important talks about US tariffs on EU goods, impacting the EUR/USD pair. Attention is shifting to US jobs data as the yen gains strength, tied to wage trends in Japan. In Canada, the government has postponed its electric vehicle sales target to 2026 due to issues with tariffs. Forex trading carries high risks, and leverage can lead to larger losses. Before trading in forex, individuals should consider their financial goals and how much risk they can take on, as it’s possible to lose more than the initial investment. InvestingLive does not offer investment advice but shares information for education and market analysis. The information provided should not be viewed as a guarantee of performance or as trading advice. The Euro is under significant pressure because of potential new US tariffs of 15-20% on EU goods. This political risk suggests that buying put options on EUR/USD might be a smart way to protect against further losses. Recent data shows Eurozone manufacturing PMI is down for the third month in a row at 48.5 in August 2025, reinforcing a bearish outlook for upcoming weeks.

Potential Rate Hike in Japan

A major shift is happening in Japan, where rising wages may lead the Bank of Japan to consider a rate hike, possibly in October. Japan’s nominal wage growth reached 3.1% year-over-year in July 2025, the highest in nearly thirty years, making a hawkish shift more likely. This suggests continued strength in the yen, making USD/JPY put options or bearish call spreads appealing strategies. All eyes are on the US non-farm payrolls report due today, which will significantly impact the US dollar. A strong number above the expected 170,000 could raise hopes for another Fed rate hike, while a lower number could confirm the dollar’s recent weakness. Implied volatility is high for dollar pairs, so traders should be ready for a sharp move after the report. For AUD/USD, trade tensions are creating a global risk-off sentiment, compounded by falling commodity prices. We have seen iron ore prices drop by over 8% in the past month, which is a tough barrier for the Australian dollar. Similarly, Canada’s delay on EV targets due to tariff concerns and oil prices struggling to rise indicate more downside risk for the Canadian dollar. Create your live VT Markets account and start trading now.

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