Canadian Dollar Climbs On Hot Friday, But Greenback Hotter After Scorching NFP -

Canadian Dollar Climbs On Hot Friday, But Greenback Hotter After Scorching NFP

Jun 09, 2024Jeremy ParkinsonFinance0

The Canadian Dollar (FXC) is giving a mixed performance on Friday, climbing against the majority of its major currency peers but backsliding against the US Dollar (UUP). The CAD shed six-tenths of a percent against the Greenback after a bumper US Nonfarm Payrolls (NFP) sent the USD broadly higher as investor hopes for a September rate cut from the Federal Reserve (Fed) wither on the vine. depositphotos Canada added more jobs than expected in May, but the figure was still well below previous figures, limiting the CAD’s upside momentum. Hourly wages also gained ground in both Canada and the US, while the US Unemployment Rate ticked higher in a cautionary note to Friday’s otherwise clean beat of market forecasts. ECONOMIC INDICATORNonfarm PayrollsThe Nonfarm Payrolls release presents the number of new jobs created in the US during the previous month in all non-agricultural businesses; it is released by the US Bureau of Labor Statistics (BLS). The monthly changes in payrolls can be extremely volatile. The number is also subject to strong reviews, which can also trigger volatility in the Forex board. Generally speaking, a high reading is seen as bullish for the US Dollar (USD), while a low reading is seen as bearish, although previous months’ reviews and the Unemployment Rate are as relevant as the headline figure. The market’s reaction, therefore, depends on how the market assesses all the data contained in the BLS report as a whole. Daily digest market movers: Fresh job additions crimp rate cut bets

US NFP added 272K net new jobs in May, clobbering the 185K forecast though the previous month’s print was revised lower to 165K from 175K.

The US Unemployment Rate ticked higher to 4.0% in May, a 28-month high.

US Average Hourly Earnings rose 0.4% MoM in May, above the forecast 0.3% and doubling the previous 0.2%.

Canada’s Net Change in Employment rose to 26.7K in May, above the 22.5K forecast but still well below the previous month’s 90.4K.

According to the CME’s FedWatch Tool, investor hopes for a September rate cut from the Fed were knocked firmly back by US data on Friday. Rate traders are pricing in only a 55% chance of at least a quarter-point cut from the Fed on September 8, down from over 70% before the US NFP print.

CANADIAN DOLLAR PRICE TODAYThe table below shows the percentage change of Canadian Dollar against listed major currencies today. Canadian Dollar was the weakest against the US Dollar.

USD EUR GBP JPY CAD AUD NZD CHF USD 0.80% 0.53% 0.71% 0.66% 1.30% 1.48% 0.80% EUR -0.80% -0.26% -0.10% -0.14% 0.49% 0.72% 0.01% GBP -0.53% 0.26% 0.16% 0.12% 0.76% 0.99% 0.27% JPY -0.71% 0.10% -0.16% -0.04% 0.58% 0.77% 0.12% CAD -0.66% 0.14% -0.12% 0.04% 0.63% 0.88% 0.15% AUD -1.30% -0.49% -0.76% -0.58% -0.63% 0.23% -0.47% NZD -1.48% -0.72% -0.99% -0.77% -0.88% -0.23% -0.70% CHF -0.80% -0.01% -0.27% -0.12% -0.15% 0.47% 0.70%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Canadian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent CAD (base)/USD (quote). Technical analysis: Canadian Dollar grinds out some gains as US Dollar soarsThe Canadian Dollar tumbled two-thirds one percent against the Greenback on Friday, but otherwise stuck to its guns. The CAD rose eight-tenths of one percent against the New Zealand Dollar and two-thirds of one percent against the Australian Dollar (FXA). The CAD is also in the green within a fifth of a percent against the Euro (FXE) and the Swiss Franc (FXF).USD/CAD shot to fresh near-term highs above 1.3750 on Friday, bumping into the ceiling of recent consolidation patterns. The pair is set to continue grinding sideways in the medium-term as buying power in the US Dollar evaporates at familiar technical highs.Daily candlesticks show the pair on pace to see its strongest close in over a month and bumping into its highest bids since early May. Consolidation remains the name of the game in the long-term, though USD/CAD continues to grind out chart paper north of the 200-day Exponential Moving Average (EMA). USD/CAD hourly chart USD/CAD daily chart CANADIAN DOLLAR FAQSWhat key factors drive the Canadian Dollar?The key factors driving the Canadian Dollar are the level of interest rates set by the Bank of Canada (BoC), the price of Oil, Canada’s largest export, the health of its economy, inflation and the Trade Balance, which is the difference between the value of Canada’s exports versus its imports. Other factors include market sentiment – whether investors are taking on more risky assets (risk-on) or seeking safe-havens (risk-off) – with risk-on being CAD-positive. As its largest trading partner, the health of the US economy is also a key factor influencing the Canadian Dollar.More By This Author:AUD/JPY Price Analysis: Consolidation Phase Continued, Bearish Pressure ObservedUS Dollar Recovers Ground As Strong NFP Figures May Delay Rate Cuts Gold Price Rises To Two-Week High Amid Fed Rate Cut Bets, Softer US Dollar

Reviews

Total Score 0%

User rating: 0.00% ( 0

votes )

Speculator Extremes: Silver, Peso, 5-Year & Sugar Lead Weekly Bets Here Are This Week’s Most Bullish Speculator Positions: This Week’s Most Bearish Speculator Positions: One Stock Doing The Heavy Lifting! Interest Rates Head Higher On Friday.