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The positive trend for the Canadian dollar, trading at levels not seen since early March around 1.35, means that in case Canada’s job figures meet expectations, the loonie may edge higher, extending its trend, according to FXStreet’s analyst Yohay Elam.

Key quotes 

“A significant downside miss, such as job losses closer to one million or an unemployment rate that nears 20% may weigh on the loonie. A substantial beat, such as a drop in the jobless rate or fewer than 300,000 positions lost may send it higher.” 

“It is essential to note that the reaction in USD/CAD may be distorted by the US Non-Farm Payrolls report published at the same time. Figures leading to the event have been too good to be true, causing more confusion and implying more volatility in the dollar.”

“Another factor to consider is oil. The price of Canada’s critical export has been choppy of late, as OPEC+ members continue deliberating further production cuts. Any headlines flying around Friday at 12:30 GMT – when the labor figures are due out – would also shake USD/CAD.”