Free Trial

USDCAD Close To Latest Highs Ahead Of Jobs Reports

CANADA
  • USDCAD sits 5-10 pips below session highs of 1.3380, which marked fresh highs since Dec 19 as it continues what’s deemed a technical corrective rally.
  • Next resistance is seen at 1.3409 (1.0% 10-dma envelope) whilst support at 1.3177 (Dec 27 low).
  • CAD outperforms most majors on the day with its linkage to a stronger USD offsetting the hit from a further decline in equity futures.
  • US and Canadian jobs reports land at 0830ET, with Canadian jobs growth seen slowing to +15k after +25k (with the survey not including either CIBC or RBC looking for 10k increases).
  • The u/e rate should as always be watched for broader balance signs amidst high population growth, seen pushing higher again to 5.9% from 5.76% in Nov (and from 5% as recently as April).
  • Hourly wage growth meanwhile is seen being problematic for the BoC, accelerating from 5.05% to 5.4% Y/Y for permanent employees and marking joint highs since Jan 2021 with help from a base effect.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.