- The USD/CAD pair is on bids near 1.3450 during early Friday.
- The pair rallied to a nine-week high on Thursday after ECB.
- Monthly employment details from the US and Canada will become the next important catalyst.
USD/CAD is trading around 1.3450 on early Friday. The quote rallied to a fresh nine-week high on Thursday after the US Dollar (USD) registered across the board strength on ECB’s dovish stint. Traders now await February month employment statistics from Canada and the US for the fresh impulse to target 1.3500 resistance-mark.
On Thursday, the European Central Bank (ECB) presented a dovish surprise by cutting down growth and inflation forecasts together with announcing new TLTRO program. As a result, investors rushed to the USD in search of risk-safety and propelled the USD/CAD pair.
It should also be noted that higher than expected -5.0% drop in Canadian building permits m/m to -5.5% and a soft print of the US weekly initial jobless claims of 223K versus 225K consensus provided additional strength to the US Dollar against its Canadian counterpart.
Traders now await monthly employment details from Canada and the US in order to determine near-term pair moves.
Canada’s net change in employment is likely declining to 0.0K from 66.8K prior whereas unemployment rate may remain unchanged at 5.8%.
Elsewhere, the US unemployment rate can weaken to 3.9% from 4.0% with market consensus showing a brighter chance for a 3.3% growth in average hourly earnings (YoY) from 3.2% prior. Additionally, headline non-farm payrolls could decline to 180K from 304K.
USD/CAD Technical Analysis
Sustained trading beyond 1.3410-20 indicates the USD/CAD pair’s additional upside to horizontal-resistance near 1.3500, a break of which can print 1.3565 and 1.3620.
If prices fail slip under 1.3410, sellers may avail the opportunity to target 1.3370 and 50-day simple moving average (SMA), at 1.3280, now.