- WTI strength, comparatively better data from Canada drags the Loonie pair to 100-day SMA.
- Employment data from the US and Canada will be followed for fresh impulse.
With the WTI successfully extending latest recovery, USD/CAD drops to the six-week low near 1.3350 while heading into the European open on Friday.
In addition to Fed’s John Williams and Mary Daly, upbeat comments from the IMF’s Christine Lagarde seem to have pleased energy buyers off-late.
Some among the analyst fraternity also claim crude’s recent rise as a short covering move from important support.
Also, better than expected $-2.80 billion Canadian trade deficit to $-0.97 billion outcomes can be considered as a reason for the Loonie’s near-term strength.
May month employment data are next in the pipeline for the investors to look. Forecasts suggest that the US job card might portray downbeat nonfarm payrolls (NFP) figure of 185K versus 263K prior while anticipating no change in 3.6% unemployment rate and 3.2% average hourly earnings (YoY).
Elsewhere, Canada’s unemployment rate is also expected to remain unchanged at 5.7% while the net change in employment may decline to 8.0K from 106.5K.
Technical Analysis
Should prices slip beneath 1.3350 level of the 100-day simple moving average (SMA), 1.3310 can offer an intermediate halt ahead of dragging them to 1.3270 mark comprising 200-day SMA.
On the upside, 1.3410, 1.3480 and a recent high around 1.3565 could lure buyers during the pair’s rally.
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