- USD/CAD moves above 1.3600 following the footprints of the US Dollar.
- Oil prices continue to face pressure above $80.00 as the Chinese economy is going through turbulent times.
- As per expectations, the Canadian economy grew at a slower pace of 0.3% vs. Q1 growth rate of 0.8%.
The USD/CAD pair jumped strongly above the round-level resistance of 1.3600 in the early New York session. Strength in the loonie asset is backed by a strong recovery in the US Dollar as market sentiment turns bearish ahead of the United States labor market data for August.
S&P500 is expected to open on a flat note amid a quiet market mood. However, investors will remain cautious ahead of the US Automatic Data Processing (ADP) Employment data for August. The US Dollar Index (DXY) jumps to near 104.30 as investors hope that higher-than-anticipated labor market data could elevate hopes of one more interest rate hike from the Federal Reserve (Fed).
As per the estimates, the US labor force witnessed fresh additions of 195K, lower than July’s reading of 324K. A higher employment reading would allow the Fed to deliver a hawkish commentary in the September monetary policy meeting.
But before the US Employment data, investors will focus on JOLTS Job openings for July. BLS noted that the number of job openings on the last business day of July is forecast to decline to 9.46 million from 9.58 million in June. "Over the month, the number of hires and total separations decreased to 5.9 million and 5.6 million, respectively,
Meanwhile, oil prices continue to face pressure above $80.00 as the Chinese economy is going through turbulent times due to rising deflation risks and weak domestic demand. It is worth noting that Canada is the leading exporter of oil to the United States and lower oil prices will impact the Canadian Dollar.
On the economic data front, the Canadian Dollar will dance to the tune of the Q2 Gross Domestic Product (GDP) data for the April-June quarter. As per expectations, the Canadian economy grew at a slower pace of 0.3% vs. Q1 growth rate of 0.8%.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD retreats toward 1.0850 on modest USD recovery
EUR/USD stays under modest bearish pressure and trades in negative territory at around 1.0850 after closing modestly lower on Thursday. In the absence of macroeconomic data releases, investors will continue to pay close attention to comments from Federal Reserve officials.
GBP/USD holds above 1.2650 following earlier decline
GBP/USD edges higher after falling to a daily low below 1.2650 in the European session on Friday. The US Dollar holds its ground following the selloff seen after April inflation data and makes it difficult for the pair to extend its rebound. Fed policymakers are scheduled to speak later in the day.
Gold climbs to multi-week highs above $2,400
Gold gathered bullish momentum and touched its highest level in nearly a month above $2,400. Although the benchmark 10-year US yield holds steady at around 4.4%, the cautious market stance supports XAU/USD heading into the weekend.
Chainlink social dominance hits six-month peak as LINK extends gains
-637336005550289133_XtraSmall.jpg)
Chainlink (LINK) social dominance increased sharply on Friday, exceeding levels seen in the past six months, along with the token’s price rally that started on Wednesday.
Week ahead: Flash PMIs, UK and Japan CPIs in focus – RBNZ to hold rates
After cool US CPI, attention shifts to UK and Japanese inflation. Flash PMIs will be watched too amid signs of a rebound in Europe. Fed to stay in the spotlight as plethora of speakers, minutes on tap.