- USD/CAD trades sideways around 1.3700 as the focus shifts to US/Canada Employment data.
- The US private sector hired 89K job seekers in September, halved from the August reading of 180K.
- Canada’s fresh payrolls are seen lower at 20K and the jobless rate is seen higher at 5.6%.
The USD/CAD pair trades topsy-turvy near the round-level support of 1.3700 in the European session. The Loonie asset is expected to remain sideways as investors await the labor market data of the United States and Canada for September month.
S&P500 added some gains in the London session while the market mood was quiet. The US Dollar Index (DXY) has extended its downside to near 106.30 as investors expect that US labor market conditions will cool down. Investors' approach towards the US job market is shifting from ‘resilient’ to ‘stable’ after US ADP Employment Change data.
As per the US ADP report, the private sector hired 89K job seekers in September, halved from the August reading of 180K. A soft labor market report may fade expectations of one more interest rate increase by the Federal Reserve (Fed) in any of the last two monetary policy meetings in 2023. Also, the sell-off pace in the US treasuries would ease and hot yields may cool down.
San Francisco Fed Bank President Mary Daly said that another rate hike may not be needed if the labor market slows, inflation remains around 4% and financial conditions remain tight.
On the Canadian Dollar front, investors are also awaiting the labor market data. As per the estimates, fresh payrolls were lower at 20K from the August reading of 39.9K. The Unemployment Rate is seen increasing by a tick to 5.6% from the former release of 5.5%.
Meanwhile, the oil price weakens significantly amid a gloomy macroeconomic outlook. It is worth noting that Canada is the leading exporter of oil to the United States and lower oil prices impact the Canadian Dollar.
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
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.