Instrument: USDCAD
Bullish Preference:
Buy position is envisaged if the price trades above 1.33885 with take profit at 1.34170.
Bearish Preference:
Sell position is envisaged if the price trades below 1.33557 with take profit at 1.33333.
Fundamentals:
USD
1:30 PM Average Hourly Earnings m/m
1:30 PM Non-Farm Employment Change
1:30 PM Unemployment Rate
CAD
1:30 PM Employment Change
1:30 PM Unemployment Rate
Comment:
The USD/CAD pair enters a bullish consolidation phase and oscillates in a narrow trading band around the 1.3365 regions, just below a nearly four-week high touched during the Asian session this Friday. The US Dollar (USD) remains depressed for the second straight day in the wake of the uncertainty over the Federal Reserve’s (Fed) rate-hike path. Apart from this, the recent bullish run in Crude Oil prices is seen underpinning the commodity-linked Loonie and acting as a headwind for the major. The Canadian jobs data, however, is more likely to be overshadowed by the closely-watched US NFP report, which is expected to show that the economy added 225K new jobs in June as compared to 339K in the previous month. The unemployment rate, however, is anticipated to edge lower to 3.6% from a seven-month high level of 3.7% in May. Meanwhile, Average Hourly Earnings are expected to remain well above levels consistent with the Fed’s 2% inflation target.
Analysis: SCRUM Team
