- USD/CAD advances towards near 1.3350 as investors' risk appetite decreases.
- FOMC Minutes will offer outlook on inflation and interest rates.
- The Canadian unemployment rate stands at 5.9% compared to 5.8% in November.
The USD/CAD pair jumps near the crucial resistance of 1.3350 late in the London session. The pair recovers quickly, following the tracks of the US Dollar Index (DXY) amid the caution of market participants awaiting the minutes of the Federal Open Market Committee (FOMC) and the US ISM Manufacturing PMI for December.
S&P 500 futures have generated nominal losses in the European session, portraying a new decline in the risk appetite of market participants. The USD Index advances to near 102.50 as the chances of the Federal Reserve (Fed) deciding to cut rates starting in March have decreased slightly. US 10-year Treasury yields have extended their rally to near 4%.
The FOMC minutes will demonstrate the extent to which policymakers are interested in lowering interest rates. Meanwhile, data from US factories will be closely monitored. According to preliminary estimates, the manufacturing PMI will stand at 47.1 points, above the previous reading of 46.7, but will remain below the threshold of 50.0 points for 14 consecutive months.
Additionally, attention will focus on November JOLTS job openings in the United States. Investors expect American employers to post 8.85 million jobs, up from 8.733 million in October.
As for the Canadian dollar, investors are awaiting December employment data, which will be released on Friday. According to estimates, the Unemployment rate rose to 5.9%, compared to 5.85 previously. The number of job seekers hired by Canadian employers was 13,500, down from 24,900 additions in November.
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.
