- USD/CAD exhibits mild correction after revisiting 1.3950.
- Lower US Initial Jobless Claims and higher private payrolls have signaled an improvement in labor market health.
- Canadian economic growth remained flat in August, as expected.
The USD/CAD pair struggles to establish above the key support of 1.3900 in Thursday’s North American session. A one-sided rally in the Loonie pair appears to have paused, with investors focusing on the United States (US) Nonfarm Payrolls (NFP) data for October, which will be published on Friday.
Canadian Dollar PRICE Last 30 days
The table below shows the percentage change of Canadian Dollar (CAD) against listed major currencies last 30 days. Canadian Dollar was the strongest against the New Zealand Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 2.41% | 3.18% | 6.34% | 2.81% | 5.47% | 6.63% | 2.25% | |
| EUR | -2.41% | 0.74% | 3.84% | 0.38% | 2.99% | 4.11% | -0.18% | |
| GBP | -3.18% | -0.74% | 3.09% | -0.36% | 2.22% | 3.36% | -0.89% | |
| JPY | -6.34% | -3.84% | -3.09% | -3.34% | -0.82% | 0.27% | -3.86% | |
| CAD | -2.81% | -0.38% | 0.36% | 3.34% | 2.61% | 3.73% | -0.53% | |
| AUD | -5.47% | -2.99% | -2.22% | 0.82% | -2.61% | 1.10% | -3.08% | |
| NZD | -6.63% | -4.11% | -3.36% | -0.27% | -3.73% | -1.10% | -4.10% | |
| CHF | -2.25% | 0.18% | 0.89% | 3.86% | 0.53% | 3.08% | 4.10% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Canadian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent CAD (base)/USD (quote).
Economists expect the economy to have added 113K fresh payrolls, significantly lower than 254K in September. The Unemployment Rate is expected to have remained steady at 4.1%. Investors will pay close attention to the employment data as it will significantly influence market expectations for the Federal Reserve (Fed) interest rate path, given that officials are confident about inflation remaining on track to the bank’s target of 2%.
Meanwhile, a few job-related indicators have pointed to an improvement in labor market conditions. Initial Jobless Claims for the week ending October 25 came in lower at 216K than estimates of 230K. Wednesday’s ADP Employment Change data showed a robust addition of payrolls by the private sector.
In the Canadian region, flat economic performance is expected to keep the Canadian Dollar (CAD) on the backfoot. Statistics Canada reported that the monthly Gross Domestic Product (GDP) was flat in August, as expected. While the economy grew by 0.1% in July. Subdued economic performance is expected to prompt the Bank of Canada (BoC) to cut interest rates again in its monetary policy meeting in December.
USD/CAD faces mild correction after revisiting the two-year high of 1.3950. The near-term outlook of the Loonie pair remains firm as the 20-day-Exponential Moving Average (EMA) near 1.3800 is sloping higher.
The 14-day Relative Strength Index (RSI) takes a breather after turning oversold around 75.00. However, the overall status of the RSI (14) points to a strong bullish momentum.
More upside would appear if the asset breaks above the immediate high of 1.3950. The scenario will pave the way for the psychological resistance of 1.4000 and the round-level resistance of 1.4100.
On the contrary, a downside move below October 29 low of 1.3875 will expose the asset to October 15 high near 1.3840, followed by the round-level figure of 1.3800.
USD/CAD daily chart
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
EUR/USD clings to daily gains around 1.0860
The US Dollar manages to rebound from earlier lows, prompting EUR/USD to surrender part of its initial advance to the vicinity of the 1.0900 region as investors shigt their attention to the upcoming critical US labour market report on Friday.
USD/JPY maintains its offered stance in the low-152.00s
USD/JPY could not sustain the earlier bull run to the 153.00 region, succumbing to the prevailing BoJ-induced appreciation of the Japanese yen and thus returning to the 152.30-152.40 band amidst lower US yields across the curve ahead of Friday's US NFP.
Gold retreated sharply, trades around $2,740
Prices of Gold trade markedly on the defensive on Thursday following a marginal uptick in the Greenback and declining US yields. Despite the daily pullback, the yellow metal is anticipated to remain bolstered by steady uncertainty pre-US election.
Eurozone inflation up to 2% in October as unemployment hits new record low
The Eurozone’s inflation rate increased more than expected, with core inflation stable at 2.7%. The direction of incoming data in the region is not quite clear, which provides the ECB with confusing signals for the path of rate cuts.
Bank of Japan holds rates steady amid signs of modest GDP growth
Monthly industrial production results have been mixed but generally indicate a modest recovery in third-quarter GDP. Clear guidance from the Bank of Japan remains elusive, with each upcoming meeting being pivotal.
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.