USDCAD Price to Face US and Canada Employment Reports

Canadian Dollar Talking Points

The USDCAD pair is nearing its weekly high (1.2457) as it seeks a downgrade following the Federal Reserve’s pricing decision – Updated Publication of labor market figures.

USD/CAD Rate to Face US and Canada Employment Reports

The USDCAD pair appears to be on a 200-day SMA test (1.2479) as it rose earlier this week, but the lack of movement to break above the moving average could be too constrained Lead conditions in the stock market. Like the Federal Reserve, the Open Market Committee (FOMC) and the Bank of Canada (BoC) take a results-oriented approach to monetary policy.

Image of DailyFX Economic Calendar for Canada and US

As a result, key data released later this week could affect the near-term outlook for the USDCAD pair, as Canada’s employment report is expected to grow 50.0 thousand in October, compared to 157.1 thousand last month. The U.S. nonfarm payroll (NFP) is projected to rise 450,000 over the same period, after rising from 194,000 in September.

The US job recovery could keep the Federal Reserve Open Markets Committee on track to slow monthly net asset purchases by $ 10 billion for Treasury bills and $ 5 billion for government mortgage-backed bonds. But the slowdown in employment growth in Canada is sidelining the Bank of Canada as the central bank has pledged to “keep policy rates at a minimum until the downturn so that the 2% inflation target can be met.”

In turn, USD / CAD could seek to correct its decline from October high (1.2739) as the RSI continues to rebound from the oversold territory. Further fluctuations in exchange rates can help reduce distortions in retail sentiment.

Image of IG Client Sentiment for USD/CAD rate

IG Client Report 75.04%, now USDCAD traders are displayed with a long period of traders in a list of 3.01 to 1. The number of traders 0.39% less than yesterday and 2.64% higher than last week Is, while the higher network traders are 13.40% less than yesterday and 13.40% less than last week.

The condensation behavior, despite the net advent of a continuous interest, appears to be 75.81% of the net length of the US dollar / Canadian dollar last week, while reducing the short net status with exchange rate exchange rate (1.2457) even After US and Canadian versions of the United States and Canada, the US / Canadian dollar as a whole Federal Reserve and BOC leads to an increase in support, but the exchange rate can be reduced by the highest level in October (1.2739) When the RSI continues to be obtained from the transmission of territory.

USD/CAD Rate Daily Chart

Image of USD/CAD rate daily chart

Source: Trading View

— Written by David Song, Currency Strategist