USD/CAD

ING’s Francesco Pesole expects Canada’s September jobs report to show a modest payroll rebound and slightly higher unemployment, not enough to justify an October Bank of Canada hike. He notes that a December move is fully priced, while USD/CAD remains dominated by the Dollar, with a sustained move below 1.420 seen as requiring better global bond conditions.

Statistics Canada will release its September Labour Force Survey on Friday, with markets anticipating a modest recovery in employment following August's sharp decline.

The USD/CAD pair declines to around 1.4220 during the early European trading hours on Friday. The Canadian Dollar (CAD) strengthens against the US Dollar (USD) as the gap between US and Canadian yields narrowed from the historically wide levels seen earlier in ‌the week.

USD/CAD extends its losses for the second successive day, trading around 1.4210 during Asian hours on Friday.

Scotiabank strategists Shaun Osborne and Eric Theoret highlight that USD/CAD around 1.4269 shows signs of consolidation after a sharp Canadian Dollar (CAD) weakening since early September. Price action is closely tracking the 2-year US–Canada spread, with Oil offering some support to CAD.

The Canadian Dollar (CAD) posts marginal losses on Thursday with the safe-haven US Dollar (USD) favoured by the risk-averse mood, as tensions in the Middle East boost Crude prices and the global bond selloff extends.