The week has started with little fanfare. On the fundamental front, there are no Canadian events. In the US, the sole indicator is the Federal budget balance. On Tuesday, the US releases consumer inflation, the primary gauge of consumer inflation.
Canada employment jumps, loonie shrugs
The week ended with key employment numbers. The economy created 952.9 thousand jobs in June, up sharply from 289.6 thousand beforehand. The unemployment rate fell to 12.3%, down from 13.7%. However, this figure was above the estimate of 12.0%.
Despite the rosy job creation numbers, the Canadian dollar was almost unchanged on Friday. The Canadian dollar hasn’t been able to capitalize on the risk appetite we’re seeing on the part of investors – the Australian dollar, for example, put together a double-digit rally in the second quarter. Canada’s economy is very dependent on the giant US economy, which accounts for 70% of Canadian exports. Policymakers are hoping that the recovery in the US will pick up speed, which would be good news for Canada’s economy as well as the Canadian dollar.
Monday (July 13)
- 14:00 US Federal Budget Balance. Estimate -860.0B
Tuesday (July 14)
- 8:30 US CPI. Estimate 0.6%
- 8:30 US Core CPI. Estimate 0.1%
*All release times are EDT
*Key events are in bold
USD/CAD has kicked off the week with slight gains. The pair is currently trading at 1.3554, down 0.27%. In the Asian session, the pair recorded slight losses and leveled off in the European and North Ameican sessions.
- 1.3545 is fluid. Currently, it is a weak support level. The next support level is at 1.3514
- 1.3571 is the next resistance line, followed by resistance at 1.3628
- The 20-day MA follows immediately, at 1.3572.
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.