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USD/CAD – Little Movement Ahead of US, Canadian Job Data

The Canadian dollar is steady on Friday, as USD/CAD trades at the 1.14 line. We could see some strong movement from the pair during the day, as both the US and Canada release key employment data. In the US, the markets are expecting Nonfarm Employment Change to improve to 231 thousand, while Canadian Employment Change is expected to fall to 5.3 thousand.

There was good news on the US employment front, as jobless claims improved to 297 thousand, practically matching the forecast. We’ll get a look at the official Nonfarm Employment Change report on Friday, with the markets expecting a strong reading of 231 thousand. If the indicator meets expectations, the US dollar could take advantage and post gains.

Earlier in the week, the Bank of Canada held the benchmark interest rate at an even 1.00%, where it has been pegged since September 2010. In a rate statement, the BOC said that while lower oil prices are a serious concern, the economy is in good shape and is showing signs of a broad recovery. The BOC statement gave a boost to the Canadian dollar, which has struggled to stay below the 1.14 line. The Canadian economy has showed signs of improvement, as underscored by the September GDP reading, which came in at 0.4%, marking a four-month high.

USD/CAD for Friday, December 5, 2014

USD/CAD December 5 at 11:50 GMT

USD/CAD 1.1410 H: 1.1418 L: 1.1384

 

USD/CAD Technical

S3 S2 S1 R1 R2 R3
1.1004 1.1124 1.1278 1.1414 1.1493 1.1669

 

Further levels in both directions:

 

OANDA’s Open Positions Ratio

USD/CAD ratio is almost unchanged on Friday. This is not consistent with the movement of the pair, as the Canadian dollar has posted small gains. The ratio remains close to an event split between short and long positions, indicative of a lack of trader bias as to what direction the pair will take next.

USD/CAD Fundamentals

* Key releases are highlighted in bold

*All release times are GMT

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Kenny Fisher

Kenny Fisher [4]

Currency Analyst at Market Pulse [5]
Kenny Fisher joined OANDA in 2012 as a Currency Analyst. Kenny writes a daily column about current economic and political developments affecting the major currency pairs, with a focus on fundamental analysis. Kenny began his career in forex at Bendix Foreign Exchange in Toronto, where he worked as a Corporate Account Manager for over seven years.