Canada’s employment report on Friday for the month of January could drag USD/CAD lower if data surprises to the upsideaccording to the economists of Bank of America Global Research.
CAD/USD has had a strong positive correlation with Canadian jobs data surprises.
“We found that in the last two years, the rate of change CAD/USD has had a strong positive correlation with Canadian jobs data surprises“.
“Our economists and the consensus forecast expect Canada to add 15,000 jobs by January 2023. Risk may be to the upside given two recent big surprises for October and December 2022 respectively, which led to immediate CAD/USD rallies of 0.57% and 0.72% within two hours of the release of the data.”
“In case Canadian jobs data surprises to the upside this Friday, we would expect some tailwind for the CAD and that the USD/CAD to fall below the 1.34 zone.”
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.
