USD/CAD: Canadian Dollar Pushes Higher, Canadian Employment Next
2024.10.11 08:07
The Canadian dollar has edged lower on Friday. In the European session, is trading at 1.3767 at the time of writing, up 0.19%.
The Canadian dollar has hit a rough patch and is on a seven-day slide in which it has fallen 1.6%. On Thursday, the Canadian dollar weakened to 1.3775, its lowest level against the since August 7.
Canada’s Job Growth Expected to Rise Slightly
Canada releases the September employment report later today, with no dramatic changes expected. Job growth is expected at 27 thousand, compared to 22.1 thousand in August. The unemployment rate is projected to tick up to 6.7%, following 6.6% in August.
The Bank of Canada has been a leader in the new rate-cutting cycle, having already cut rates by a quarter-point three times this year. This has brought the cash rate down to 4.25% but the economy has been slow to respond and the BoC is expected to continue cutting rates. The BoC doesn’t want rates to diverge to widely from those in the US and will be keeping a close eye on the Fed’s expected cuts in November and December.
The US ends the week with the producer price index for September, which could be a mixed bag. Headline PPI is expected to tick lower to 1.7% y/y, compared to 1.6% in August. The core rate, however, is projected to rise to 2.7%, up from 2.4% in August. With inflation largely beaten, the Federal Reserve’s primary focus has shifted from inflation to employment. Still, an unexpected PPI reading in either direction could have an impact on the movement of the US dollar today.
USD/CAD Technical
- There is resistance at 1.3782 and 1.3822
- 1.3735 and 1.3695 are the next support levels
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