USD/CAD ticks higher, awaits Canadian labor data
|The USDCAD pair has been consolidating recently, and the greenback was somewhat stronger ahead of the US session on Friday.
Later in the day, the US PPI indices are due, which could cause some volatility in the markets.
Moreover, the Canadian labor market data are due, with markets expecting the unemployment rate to improve to 8.0% from 8.2% previously. The Canadian economy most likely created only 100,000 new jobs in March, well down from 259,000 in February and nearly 10 times less than the US economy created in the same month.
The USDCAD pair will most likely be volatile after the data. It looks like the pair has found support near 1.25 again, and it might be forming a reverse head and shoulders pattern, which is a bullish formation.
Therefore, if today's data disappoint, the risk for the USDCAD pair is to the upside. The resistance could be at 1.2650, and if not held, further gains toward 1.2750 might occur.
Alternatively, if there is a bearish reaction to the data, we might see another test of the mentioned 1.25 level.
It looks like oil has peaked for the near future, which could undermine the Canadian dollar as well.
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