USD/CAD steadies a little below 1.34, looks to post modest weekly gains
- Employment data from Canada disappoints.
- US Dollar Index climbs to mid-97s on upbeat NFP figures.
- WTI adds nearly 5% this week.
The USD/CAD pair gained traction in the second half of the day and tested the 1.34 handle as the disappointing employment data from Canada didn't allow the loonie to take advantage of the rising crude oil prices. As of writing, the pair was up 0.2% on the day at 1.3384. For the week, the pair is adding around 50 pips.
Statistics Canada today reported that the number of employed decreased by 7.2K in March compared to analysts' estimate for an increase of 1K. Although the unemployment stayed unchanged at 5.8% as expected, the CAD came under heavy selling pressure.
On the other hand, nonfarm payrolls in the U.S. rose by 196,000 following February's uninspiring reading of 33,000 (revised up from 20,000) to help the greenback outperform its major rivals. Underlying details of the employment report revealed that the annual wage inflation fell to 3.2% from 3.4% to keep the US Dollar Index' upside capped. As the trading action turns subdued in the NA evening, the DXY is up 0.12% on a daily basis at 97.42.
Meanwhile, following a 2-day long consolidation phase, crude oil started to push higher and the barrel of West Texas Intermediate touched its highest level since early November at $63.15. With this week's upsurge, the WTI added nearly 5% boosted by easing concerns over a global economic slowdown.
Technical levels to consider
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
