USD/CAD is not overvalued at current levels – ING

FXStreet Insights Team FXStreet

Canadian jobs figures may tilt market pricing towards another BoC rate hike, but watch for data volatility, economists at ING report.

Key jobs figures to steer rate expectations

As it often happens, Canadian jobs figures will be released at the same time as the US ones, and the USD/CAD reaction will depend on a mix of the two prints.

We think that a jobs report matching consensus would be enough to keep market expectations for more BoC tightening alive. However, data volatility is an issue in Canada, and the chances of a negative read are relatively high.

Unlike previous instances, USD/CAD isn’t overvalued at current levels, and we would favour any CAD strength on the back of good domestic data against other pro-cyclical currencies as opposed to the USD.

See – Canada Employment Preview: Forecasts from five major banks, job growth to slow

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

EUR/USD comes under pressure near 1.1700

EUR/USD is paring back part of its earlier gains, easing towards the 1.1700 area as the US Dollar stages a modest rebound. The Greenback is finding some support as markets continue to digest President Trump’s speech at the World Economic Forum in Davos.

GBP/USD looks vacillating around 1.3430

GBP/USD is alternating gains with losses midweek, pushing back towards the 1.3430 area after bottoming out near the 1.3400 support. The modest recovery in Cable comes as the US Dollar advances modestly following President Trump’s comments at the World Economic Forum.

Gold corrects sharply lower, bulls retain control

Gold pushed its rally further on Wednesday, hitting a fresh all-time high near $4,900 per troy ounce earlier in the session. Risk appetite remains fragile, with investors staying cautious after President Trump delivered his speech in Davos, while EU–US tensions over the Greenland issue continue to simmer.

Crypto Today: Bitcoin, Ethereum, XRP stabilize despite weakening institutional, retail demand

Bitcoin holds below $90,000 on Wednesday, weighed down by weakening institutional and retail demand. Ethereum defends $2,900 support amid resumption of spot ETF withdrawals. XRP holds above $1.90 as US-listed spot ETFs record the second outflow since launch.

US President Trump at WEF in Davos: No nation can secure Greenland other than US

US President Donald Trump delivers a keynote speech at the World Economic Forum (WEF) held in Davos. "Certain places in Europe not recognizable any more."

Monero risks extending correction as market structure weakens

Monero (XMR) is extending its downtrend, below the $500 level at the time of writing on Wednesday, as sellers remain dominant during the American session. XMR has declined by approximately 38% from a recent high of $800, reached last Wednesday.