The Canadian dollar continues its recovery path. At 1.0855, USD/CAD is now below the April low and is trading at the lowest level since early January.
The weakness of the US dollar across the board and some good Canadian data pushes the pair lower ahead of the all important Canadian jobs data.
The US dollar suffered a major downfall on Tuesday, and the recovery has been minimal. Yellen’s testimonies in Congress were in line with previous appearances and were not hawkish, to say the least.
Canada reported a strong housing starts figure: an annualized level of 195K, far better than 177K expected and a big bounce from 157K last month. The Canadian economy seems to enjoy a weaker C$. Will the currency rise now and hurt the economy once again? So far, the BOC maintains its slightly dovish stance and doesn’t return to the hawkish one.
Job figures for April are expected to show a gain of around 15K jobs after a super strong job gain of 42.9K in March. This March jobs report keeps on boosting the loonie. The unemployment rate is predicted to remain at 6.9%.
USD/CAD daily chart, showing the big fall of the pair (or rise of CAD/USD if you wish):
Below 1.0850, support is found at 1.0780, followed by 1.0660. Resistance awaits at 1.0950, with the obvious 1.10 above. For more levels, see CAD USD forecast.
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