USD/CAD to test June lows at 1.33 on a magnificent jobs report – TDS
|Though below consensus, economists at TD Securities think the CAD will welcome a good jobs report in the absolute sense. They also think that markets will be keen to hear what Governor Macklem has to say next week, which might help USD/CAD to find a home between 200-DMA at 1.35 and daily downtrend resistance near 1.3620/30.
Don´t miss – Canada Net Change in Employment Preview: Seven major banks expectations for June jobs report
Key quotes
“Our bias is that the CAD will be satisfied with a solid jobs number even if it comes in below expectations. We think the CAD could reflect concern if we see a substantial disappointment, perhaps below 500k. Ultimately, the data will need to be taken in conjunction with the tone in risk sentiment however, as that remains the dominant factor.”
“We are mindful that markets may be keen to see what Governor Macklem has to say next week. For this reason, USD/CAD might still find a home between the 200-dma at 1.35 and daily downtrend resistance near 1.3630. A very large upside surprise would risk a re-test of the June lows near 1.33.”
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.