USD/CAD skids below 1.2850 as DXY weakens, oil near $90.00
|- USD/CAD oscillates in a broader range of 1.2832-1.2892 ahead of US/Canada employment data.
- Canada may announce a job addition against lay-off recorded in June.
- EIA oil buildup report, OPEC+ promise for more supply, and ongoing recession fears have dragged oil.
The USD/CAD pair has slipped below the immediate cushion of 1.2850 as the US dollar index (DXY) displays a subdued performance after the open. On a broader note, the asset is auctioning in a balanced profile chartered in a 1.2832-1.2892 range. The asset is looking for a potential trigger that will guide the further direction of the asset.
On Friday, the US and China will report their employment data. The Canadian economy will likely outperform as investors expect job additions by 20k against the lay-off of 43.2k jobs in June. However, the Unemployment Rate will increase to 5% from the prior release of 4.9%.
On the US job market front, rising interest rates by the Federal Reserve (Fed) and commentaries from giant techs halting the recruitment process for the remaining year will result in a steep fall in employment opportunities. Therefore, investors have estimated 250k job additions in the labor market in July against June’s print of 372k.
Meanwhile, oil prices have slipped to near $90.00 on various bearish catalysts. Energy Information Administration (EIA) has reported a buildup in oil stockpiles, and hawkish commentary from Fed policymakers is drawing a rosy picture for the Fed. Apart from that, OPEC+ has promised to pump 100,00 (bpd) of oil in September. The catalysts reflecting an increment in total supply in times when demand forecasts have slashed dramatically have dragged oil prices swiftly.
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