USD/CAD posts modest gains above 1.3700 ahead of Canadian, US employment data – Crypto News – Crypto News
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USD/CAD posts modest gains above 1.3700 ahead of Canadian, US employment data – Crypto News

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  • USD/CAD holds above the 1.3700 psychological round mark ahead of the key events from the US and Canada.
  • US weekly Initial Jobless Claims last week improved to 207,000 vs. 205.000 prior, missing the expectation.
  • A decline in oil prices weighs on the commodity-linked Loonie.
  • Market players await the US and Canadian employment data on Friday.

The USD/CAD pair finds support above the 1.3700 mark during the early Asian session on Friday. A decline in oil prices continues to exert pressure on the commodity-linked Loonie. Market players await the employment data from both the US and Canada due later in the American session on Friday. The pair currently trades around 1.3706, gaining 0.01% on the day.

On Thursday, the US weekly Initial Jobless Claims for the week ending on September 30 improved to 207,000 from 205,000 in the previous week, below the market consensus of 210,000. Additionally, the US Balance of Trade deficit was $58.3B from the $64.7B recorded in July, lower than the expected $ 62.3 B.

Earlier this week, US private payrolls for September rose by 89,000 versus 180,000 prior, below the estimation, While, the US ISM Services PMI fell to 53.6 in September from the previous reading of 54.5, matching the market estimation.

Federal Reserve (Fed) is not expected to abandon its ‘higher-for-longer’ stance on interest rates. Market players await the highly-anticipated US Nonfarm Payrolls for more clarity about labor market conditions. The softer figures could exert some selling pressure on the Greenback against its rivals and act as a headwind for the USD/CAD pair.

On the Canadian Dollar front, the downtick in oil prices weighs on the Loonie as the country is the leading oil exporter to the US. Earlier this week, a data release showed that the Canadian S&P Global Manufacturing PMI for September came in at 47.5 from the previous reading of 48.0.

Furthermore, market markets have priced in the odds of 65% that the Bank of Canada (BoC) will hike the rate one more time this year. This, in turn, might lift the Canadian Dollar (CAD) against the Greenback.

Market participants will monitor the US and Canadian employment data due on Friday. The US Nonfarm Payrolls are expected to rise by 170K while the Unemployment Rate is estimated to decline to 3.7% from 3.8%. Also, the Canadian Net Change in Employment is expected to gain 20,000 in September. Traders will take cues from these figures and find trading opportunities around the USD/CAD pair.

 

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