- The dollar falls while waiting for the NFP report
- The rebound in Oil prices provides support to the CAD.
- Long term, the pair is in a corrective move following the November sell-off.
The US dollar loses ground on Friday, ending a 4-day rally, while the loonie trims losses, helped by rising oil prices ahead of the US Nonfarm Payrolls report.
The dollar’s recovery lost steam on Thursday, after last week’s increase in jobless claims confirmed the weakening of the US labor market anticipated by the JOLTs Job Openings report and the ADP report, and as speculation increased about a Fed rate cut in 2024.
In Canada, the Bank of Canada kept rates on hold on Wednesday, leaving the door open for further tightening, although talk of cooling inflationary pressures has acted as a headwind for the CAD.
US NFP Likely to Drive USD Volatility
The focus today will be on the US NFP, which is expected to show a moderate increase in employment and hourly wages. Investors will be watching these figures with particular interest for confirmation that the Fed’s rate hikes have come to an end, which could drive volatility in US Dollar crosses.
The technical picture shows that the pair is correcting higher, after a 3% sell-off in November. The next resistances are likely to be at the 100 4-hour SMA at 1.3600, the November 30 high, 1.3622 and 1.3700.
Supports are 1.3520 and December 4 low at 1.3475.
Technical levels to monitor
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.
