The Canadian Dollar Consolidates Ahead of Friday’s Jobs Report
Thursday 7 November, 2019
Daily Currency UpdateCAD - Canadian DollarThe Canadian dollar continues to trade in a consolidated range of 1.3157 to 1.3196. This range looks to hold ahead of tomorrow’s Canadian jobs data forecasts that see full employment to increase by 10k and the unemployment rate to rise to 5.7 percent from 5.5 percent. The United States and China have put together a road-map to decrease tariffs in phases and has seemly kept the loonie in check. The Canadian economy is known as a significant exporter of commodities; therefore, any signs of improvements in global trade and the world economy should benefit the loonie. WTI Crude oil overnight rose to $57.23 per barrel on the news of the road-map on the easing of the trade war; crude is up 1.56 percent.The technical outlook for the USD/CAD currency pair sees immediate support at 1.3157 and 1.3114, while first resistance is at 1.3201 and second at 1.3245.
Key MoversThe U.K. election campaign has officially begun as Boris Johnson visited Buckingham Place to notify the Queen of the parliament’s dissolution ahead of a Conservative Party rally. Financial markets now see opinion polls as the primary barometer to watch in terms of gauging Brexit outcomes which means any significant swings in polls could have an impact on Sterling. The latest opinion poll shows Boris Johnson’s Conservatives in a comfortable 11 point lead on 38 percent ahead of the December 12 general election, labor lagging on 27 percent, the Brexit party seeing their vote shrink to only 10 percent, while the Liberal Democrats are on 16 percent. GBP/USD sits at 1.2856, having dropped from a high of 1.2897. The main event for the Pound this week was the highly anticipated Bank of England meeting today; interest rates remain unchanged at 0.75 percent. The BOE will enter a quiet period heading into the December 12th election in the U.K. There is growing speculation that the BOE will begin to adopt this more neutral stance due to weaker growth caused by Brexit.
- EUR/CAD: 1.4575 - 1.4600 ▼
- AUD/CAD: 0.9052 - 0.9096 ▲
- NZD/CAD: 0.8374 - 0.8406 ▲