USD/CAD: Loonie on the defensive, 1.3700/50 will offer support – TDS
|The Canadian labour market remains red-hot. While the jobs data might do little to assuage the BoC's concern over whether they have done enough on rate hikes, the CAD remains near-term challenged, economists at TD Securities report.
CAD to stay on the defensive on crosses
“The Canadian labour market continues to fire on all cylinders with no sign of mean reversion after 150K jobs were added in January. This number will not change that risks are far more fluid around the Fed than the BoC.”
“Moreover, we think a higher fed funds terminal rate could raise the perceived risk of a hard landing or a financial accident. That, alongside domestic debt imbalances and fragile risk sentiment, should keep CAD on the defensive for now.”
“We see support emerging into 1.3750 for USD/CAD, and CAD biased to lag on crosses.”
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.