The tariff ballast prevented the CAD from fully taking advantage of a positive employment report on Friday. Although most of the profits were in part -time jobs, the earnings in full -time jobs were still very decent and the hours worked ended the second quarter in a firm note, a positive signal for growth, indicate the main strategists of FX of Scotiabank, Shaun Osborne and Eric Theoret.
Focus on IPC data on Wednesday
“With the underlying inflation (Wednesday) that is expected, it reflects still persistent underlying prices, the data reinforces the idea that the Boc will probably remain on the sidelines for some time. Even so, the threat of President Trump of tariffs of 35% on Canada captures attention and will redouble the Canadian efforts to reach an agreement, even if the justification in the letter of the president last week (drug Commercial deficit and dairy quotas) is still weak. “
“The USD is still marginally overvalued compared to our equilibrium estimate (1,3580), which can help restrict the strength of the USD in the short term. The technical condition of the CAD has changed little in general terms. The main trend is still bassist, but the impulse of the daily trend has softenedthe spot is testing the resistance of the trend channel in 1,3735/40, and the USD closed last week in a technically bullish note. “
“However, the USD can still have difficulty recovering significantly. The up weekly signals in June failed to raise the USD in a material way and the weekly trend force oscillator remains bassist. The resistance in the middle of 1.37 seems solid, and even more firm in 1.38. The support is in 1,3650 and 1,3530/60.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
