USDCAD is a currency pair that is likely to experience elevated volatility today in the early afternoon. This is because jobs reports for October from the United States and Canada will be released at 12:30 pm BST. Attention will be mostly on the US NFP report, especially after ADP data released earlier this week hinted at a weakish around-100k jobs growth. Jobs market is, next to inflation, a key focus for the Federal Reserve and should a weakish ADP report be confirmed by NFP data today, rate hikes will become even less probable.
12:30 pm GMT - US, NFP report for October.
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Open real account TRY DEMO Download mobile app Download mobile app- Non-farm payrolls. Expected: 180k. Previous: 336k
- Private payrolls. Expected: 150k. Previous: 263k
- Unemployment rate. Expected: 3.8%. Previous: 3.8%
- Wage growth. Expected: 4.0% YoY. Previous: 4.2% YoY
12:30 pm GMT - Canada, jobs report for October.
- Employment change. Expected: 22.5k. Previous: 63.8k
- Unemployment rate. Expected: 5.6%. Previous: 5.5%
Taking a look at USDCAD chart at D1 interval, we can see that the pair experienced strong gains recently and tested the 1.3850 resistance zone. However, bulls failed to break above this area and a pullback was launched this week. USD weakness yesterday fuelled a steep drop on the pair. A disappointing NFP report, combined with strong Canadian jobs data, would likely see sell-off deepen. In such a scenario, the near-term support zone to watch can be found in the 1.3660 area.
Source: xStation5
