The Canadian dollar is slightly higher in the Friday session. Currently, USD/CAD is trading at 1.2550, up 0.18% on the day.
Canada employment data expected to accelerate
The Canadian dollar has enjoyed a solid week, with gains of close to one percent. The currency could pad those gains before the week is out, if Canada’s job numbers improve in February as expected. The street consensus is that the economy created 98.5 thousand jobs, which would be a huge turnaround, after the dismal read of -212.8 in January. The unemployment rate is expected to fall to 9.2% from the current 9.4%.
Canada’s recovery has been a bumpy one, with the Covid vaccine rollout progressing slowly and lockdowns hampering economic growth. Still, there are positive signs as well, and the jump in oil prices has been good news for the economy and the Canadian dollar. Earlier in the week, the Bank of Canada sent an optimistic message to the market, stating that the economy was proving more resilient to a second wave of Covid-19 than expected. The bank kept interest rates at a record low 0.25%, and said rates would remain at these low levels until economic slack was absorbed. The BoE does not expect this to occur prior to 2023. Despite this optimistic message, the bank gave no clues that it was considering tapering its stimulus program.
Over in the US, the focus will be on inflation, with the US Producer Price Index expected to slow to 0.4% in February. This would mark a sharp drop from the 1.3% gain beforehand.
- USD/CAD is facing resistance at 1.2738, followed by 1.2821.
- On the downside, there is support at 1.2570, followed by support at 1.2491
For a look at all of today’s economic events, check out our economic calendar. www.marketpulse.com/economic-events/
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