USD/CAD back below 1.41, NFP on sight

FXStreet (Edinburgh) - The Canadian dollar is now reverting the initial negative tone vs. the greenback, sending USD/CAD back below the 1.4100 handle.

USD/CAD losses ground ahead of Payrolls

Spot is now retreating for the first time in the week and testing sub-1.4100 levels, as the Canadian dollar is deriving some support from the better tone around crude oil prices.

The pair remains vulnerable however, in light of key releases in both US and Canadian labour markets. Consensus sees the US economy to have added 200K jobs in December, while the Canadian employment is seen gaining 10K during the same period.

USD/CAD key levels

At the moment the pair is down 0.04% at 1.4091 facing the next resistance levels at 1.4166 (high Aug.22 2003) ahead of 1.4196 (high Jul.23 2003) and then 1.4672 (high Apr.24 2003). On the downside, a breach of 1.3628 (3-month uptrend) would target 1.3530 (55-day sma) and then 1.3373 (100-day sma).

US NFP: FX reactions to payrolls Surprises – RBC CM

Research Team at RBC Capital Markets, suggests that the recent payrolls releases have all played out conventionally (stronger payrolls = stronger USD), and the reactions to more material outliers have been close to “normal”.
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USD: Risk appetite improves ahead of jobs report - MUFG

Derek Halpenny, European Head of GMR at MUFG, suggests that with financial markets a little more orderly, attention will shift to the jobs report from the US this afternoon.
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