Tuesday, February 7, 2023

USD/CAD rose as high as 1.3655 ahead of Canadian and US jobs reports.

  • USD/CAD rises for the second day in a row, supported by a combination of factors.
  • Fall in commodities and caution in the markets push the loonie down.
  • Volatility is expected with Canadian and US jobs data coming out.

The USD/CAD pair was boosted on Friday and moved from the 1.3540-1.3535 area and from the 100-MA support to a high of 1.3655, driven by a combination of factors ahead of key data.

Oil prices fight for a rebound but fail to confirm the weekly decline, which plays against the loonie. Despite optimism stemming from the easing of strict COVID-19 restrictions in China, which is expected to boost fuel demand, recession risks act as a headwind for oil and prompted some caution in markets, which supports usd/cad,

Dollar continues to receive support from US macroeconomic data, which may allow federal Reserve Maintain your aggressive rate increase path. This, combined with the prevailing caution in the markets, appears to have further benefited the dollar. However, it remains to be seen whether the dollar bulls can maintain control or choose to lighten their bets ahead of the monthly US jobs data, which is due to be released at the start of the North American session.

familiar US employment report (NFP) will be released at 13:30 GMT, this may influence the Fed’s outlook in the near term. In turn, this will play a key role in driving the demand for the dollar. Investors will also be keeping an eye on the release of monthly employment data in Canada. This implies that higher volatility is expected in USD/CAD for the next few hours.

technical level

Nation World News Desk
Nation World News Deskhttps://nationworldnews.com
Nation World News is the fastest emerging news website covering all the latest news, world’s top stories, science news entertainment sports cricket’s latest discoveries, new technology gadgets, politics news, and more.
Latest news
Related news