- USD/CAD rises for the second day in a row, supported by a combination of factors.
- Fall in commodities and caution in markets pushes the loonie down.
- Volatility expected ahead with Canadian and US jobs data.
The USD/CAD pair was boosted on Friday and rallied from the 1.3540-1.3535 zone on Friday and from the 100-MA support, reaching as high as 1.3655, driven by a combination of factors, ahead of key data.
Oil prices fight for a rebound but fail to confirm, confirming weekly decline, which plays against the loonie. Despite the optimism generated by the easing of strict COVID-19 restrictions in China, which is expected to boost fuel demand, recessionary risks act as a headwind for oil and favor some caution in the markets, which supports the USD/CAD.
The dollar continues to receive support from US macroeconomic data, which could allow the Federal Reserve maintain its aggressive rate hike path. This, together with the prevailing caution in the markets, seems to further benefit the dollar. However, it remains to be seen if the dollar bulls can maintain control or choose to lighten their bets ahead of the monthly US jobs data, which is due to be released early in the North American session.
the acquaintance US employment report (NFP) will be released at 13:30 GMT, it could influence the outlook of the Fed in the near term. This, in turn, will play a key role in driving demand for the dollar. Investors will also remain attentive to the release of monthly employment data in Canada. This implies that high volatility is expected in the USD/CAD for the next few hours.
technical levels
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.
