The Canadian dollar continues to appreciate on the back of a surge in crude oil prices. The USD appreciated after the release of the nonfarm payrolls report on Friday, June 5 with 280,000 new jobs but failed to maintain that strength at the start of the week. Canadian job numbers also impressed with 58,900 jobs when the forecast called for 10,200. The two North American economies outperformed in the jobs component, but so far the market has put most of the fate of the USD on how likely is the Federal Reserve to hike rates later this year.
Crude oil managed to rise 2 percent with a higher demand for gasoline as driving season gets underway in the United States and Europe. China released softer economic figures, which the market is taking as a signal that more stimulus is on the way, which would benefit commodity producers. This rise comes after last Friday the OPEC announced it will maintain the production levels at current highs.
The USD/CAD has continued to trade heading into the 1.23 price level. After an action packed week filled with major releases and the added uncertainty of the Greek debt negotiations, this week will provide less direction as the first major release to affect the USD/CAD will be the U.S. retail sales and the weekly unemployment claims both released on Thursday at 8:30 am. Later that same day Bank of Canada Governor Stephen will hold a press conference in Ottawa to discuss the new issue of the Financial System Review. The report is an analysis of the top financial risks to the Canadian financial system.
Canadian events to watch this week:
Thursday, June 11
11:15am Bank of Canada Gov Poloz Speaks
*All times EDT
For a complete list of scheduled events in the forex market visit the MarketPulse Economic Calendar