USD/CAD holds above the 1.3600 mark ahead of US Jobless Claims data – Crypto News – Crypto News
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USD/CAD jumps to 1.3000 after Powell as Wall Street tumbles USD/CAD jumps to 1.3000 after Powell as Wall Street tumbles

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USD/CAD holds above the 1.3600 mark ahead of US Jobless Claims data – Crypto News

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  • USD/CAD drifts higher on the firmer US Dollar.
  • The Bank of Canada (BoC) maintained its key overnight rate unchanged at 5.0%.
  • ADP private payrolls climbed 103K in November versus 106K prior.
  • Canadian Building Permits for October and US weekly Jobless Claims will be due later on Thursday.

The USD/CAD pair trades on a stronger note during the Asian trading hours on Thursday. The rebound of the pair is bolstered by renewed US Dollar (USD) demand and the decline of oil prices. At press time, USD/CAD is trading at 1.3605, down 0.09% on the day.

On Wednesday, the Bank of Canada (BoC) maintained its key overnight rate unchanged at 5.0% at its December meeting and opened the door for additional rate hikes. The central bank cited a slowing economy and easing in price pressures such as consumer spending as evidence that tighter monetary policy is helping to lower inflation.

Money markets anticipate a rate cut as early as March, with a 25 basis point (bps) reduction by April. However, BoC Governor Tiff Macklem said that the central bank is not even thinking about easing since inflation is higher than the target.

On the other hand, analysts expect the tightening cycle is done and the Fed will hold interest rates until at least July, later than earlier thought. Data released on Wednesday revealed that ADP private payrolls climbed 103K in November versus 106K prior, weaker than the market estimation of 130K.

Looking ahead, market participants will keep an eye on the Canadian Building Permits for October. Also, the US weekly Jobless Claims data will be due, which is expected to gain 222,000. The highlight will be the US employment data on Friday. The Nonfarm Payroll (NFP) is estimated to add 185K jobs in November, and the Unemployment Rate is expected to remain steady at 3.9%. These data could give a clear direction to the USD/CAD pair.

 

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