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USD/CAD remains below the 1.3600 barrier awaiting US NFP data.

  • USD/CAD loses ground near 1.3580 amid US Dollar weakness.
  • In the US, initial weekly jobless claims increased by 220,000 from 218,000 previously, while continuing claims fell from 1,925,000 to 1,861,000.
  • The Bank of Canada held interest rates steady at its December meeting, while opening the door to further increases.
  • U.S. nonfarm payrolls and unemployment rate data will be released on Friday.

The USD/CAD pair is trading negative during the early hours of the European session on Friday. The pair remains limited under the 50-day EMA barrier near 1.3600. At the time of writing, the pair is trading at 1.3577, down 0.14% on the day.

The president of the Federal Reserve (Fed), Jerome Powell, has indicated that the optimistic evolution of supply contributes to reducing inflationary pressures. This view is supported by a rebound in productivity growth in the third quarter of 2023, which translated into a substantial drop in unit labor costs. Markets believe that the Fed’s current tight monetary policies will compress demand and ensure the recent decline in inflation continues. Therefore, markets believe that the Fed has ended the cycle of interest rate hikes.

On Thursday, US data showed that initial jobless claims rose by 220,000 in the week ending December 2, up from 218,000 the week before, while continuing claims fell to 1,861. 000, compared to 1,925,000 the previous week. Markets will continue to monitor US employment data due on Friday.

As for the CAD, the Bank of Canada held interest rates steady at its December meeting, while opening the door to further hikes. The central bank stated that new signs that monetary policy is moderating spending and easing price pressures led it to maintain the interest rate at 5% and continue to normalize the financial balance. The BoC is concerned about risks to the inflation outlook and is willing to raise the policy rate further if necessary.

Meanwhile, the recovery in oil prices could boost the CAD, a currency linked to commodity prices, as the country is the main oil exporter to the United States.

Traders will be keeping an eye on US nonfarm payrolls, which are expected to add 180,000 jobs in November. Likewise, it is estimated that the unemployment rate will remain stable at 3.9%. These events could trigger volatility in the markets and give a clear direction to the USD/CAD pair.

USD/CAD technical levels

Latest price today 1.3577
Daily change today -0.0019
Today’s daily variation -0.14
Today’s daily opening 1.3596
daily SMA20 1.3654
daily SMA50 1.3692
SMA100 daily 1.3579
SMA200 daily 1.3517
Previous daily high 1,362
Previous daily low 1.3584
Previous weekly high 1.3661
Previous weekly low 1.3487
Previous Monthly High 1.3899
Previous monthly low 1.3541
Daily Fibonacci 38.2 1.3606
Fibonacci 61.8% daily 1.3598
Daily Pivot Point S1 1,358
Daily Pivot Point S2 1.3564
Daily Pivot Point S3 1.3545
Daily Pivot Point R1 1.3616
Daily Pivot Point R2 1.3636
Daily Pivot Point R3 1.3652

Source: Fx Street

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