Canada jobs data in focus ahead of rate decisions – ING
|Market attention turns to Canadian jobs data, with the unemployment rate expected to tick up to 7.2%. A weaker-than-expected report could reignite speculation of an earlier rate cut in October, adding pressure on the Loonie. While Canadian Dollar (CAD) has benefited from its correlation with the USD this week, its near-term outlook remains fragile unless ongoing US-Canada negotiations yield more concrete results, ING's FX analyst Francesco Pesole notes.
Unemployment expected to rise to 7.2%, CAD vulnerable
"Elsewhere in North America, keep an eye on jobs data out of Canada today. Expectations are that the unemployment rate continues to inch higher – to 7.2% – and that should endorse another rate cut by year-end."
"While 25bp is fully priced in for the December meeting, October is currently being treated as a 50-50 affair (11bp priced in). Any poor readings today could fuel speculation of an October cut and weigh on CAD."
"The loonie has done well this week thanks to its tighter correlation with the USD, but remains in a fragile spot unless the re-appeasement attempts between Canada and the US seen in the past few days morph into something more concrete soon."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.