Canadian jobs figures may tilt market pricing towards another BoC rate hike, but watch for data volatility, economists at ING report.
Key jobs figures to steer rate expectations
As it often happens, Canadian jobs figures will be released at the same time as the US ones, and the USD/CAD reaction will depend on a mix of the two prints.
We think that a jobs report matching consensus would be enough to keep market expectations for more BoC tightening alive. However, data volatility is an issue in Canada, and the chances of a negative read are relatively high.
Unlike previous instances, USD/CAD isn’t overvalued at current levels, and we would favour any CAD strength on the back of good domestic data against other pro-cyclical currencies as opposed to the USD.
See – Canada Employment Preview: Forecasts from five major banks, job growth to slow
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD holds higher ground near 0.6600 after strong China's Caixin Services PMI
AUD/USD holds higher ground near the 0.6600 mark early Tuesday. Strong China's Caixin Services PMI data for October underpins the Aussie amid a modest US Dollar uptick and a tepid risk tone. Traders remain reluctant ahead of the RBA policy decision and the US presidential election.
USD/JPY rises toward 152.50, despite strong Japan's PMI, cautious mood
USD/JPY has picked up fresh bids to test 152.50 in Asian trading on Tuesday, tracking the renewed US Dollar strength. The pair shrugs off strong Japanese PMI data and a cautious market mood. Traders remain wary as Americans head to polls this Tuesday.
Gold traders appear non-committal on the US election day
Gold price is miring in five-day lows near $2,730 in Asian trading on Tuesday, lacking a clear direction. Traders remain wary and refrain from placing fresh bets on Gold price on the US presidential election day.
Bitcoin ETFs beat Gold ETFs with 65% gain since launch
Bitcoin ETFs have reshaped the digital asset investment landscape since their approval in January. Their total assets under management climbed over $70 billion during the weekend, placing them ahead of other investment products, including gold.
US presidential election outcome: What could it mean for the US Dollar? Premium
The US Dollar has regained lost momentum against its six major rivals at the beginning of the final quarter of 2024, as tensions mount ahead of the highly anticipated United States Presidential election due on November 5.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.