Home USD/CAD: Bulls and bears jostle below 1.4000, US/Canada employment data eyed
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USD/CAD: Bulls and bears jostle below 1.4000, US/Canada employment data eyed

  • USD/CAD stays depressed around the one-week low.
  • Trade optimism favors USD and CAD alike but WTI recovery adds strength to the Loonie.
  • Forecasts suggest a little less horrible job figures for Canada compared to the US.

USD/CAD drops to 1.3940, down 0.25% on a day, during the pre-Europe session on Friday. While the latest trade optimism seems to have an impact on the currencies of Canada and the US, oil price recovery adds strength to the pair’s declines. Even so, traders are waiting for the monthly employment figures from both the nations for fresh impulse.

Having earlier signaled the trade-talk restart, the US and Chinese policymakers recently agreed to remain in communication and cooperation. The news tamed the previously existing trade war fears between the world’s two largest economies while also offering fresh bids to the risks and commodities like oil.

Further, WTI June Futures defies the previous two-day fall while taking the bids near $24.10 on NYMEX, up 2.20% on a day, by the press time.

On Friday, Canadian Dollar gained during the US session after news broke that the Fed rate bears the odds of plunging into negative during the next year. Also weighing on the pair could be announcements from the Canadian Prime Minister to boost the pay of essential workers.

Moving on, April month employment data from the US and Canada will be all that the USD/CAD traders are waiting for. While the US Nonfarm Payrolls are expected to slump by 20000K versus -701K prior, Net Change in Employment in Canada might recede 4000K from the previous -1010.70K. Further, the US Unemployment Rate bears the consensus to surge to 14% against 4.4% previous readouts but that of Canada may rise from 7.8% to 18%.

Also Read: US Non-Farm Payrolls April Preview: Emotions or facts for the markets

Other than the employment data, Canadian Building Permits for March and the US Wholesale Inventories are some additional catalysts to join hands with trade/virus updates for fresh direction.

Technical analysis

Sustained trading below 50-day SMA level of 1.4000 keeps the bears directed to April month low near 1.3850.

 

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