USD/CAD PRICE, CHARTS AND ANALYSIS:

Learn Extra: The Financial institution of Canada: A Dealer’s Information

USDCAD had lastly damaged above the October 2022 descending trendline this week however has since run into some resistance simply shy of the 1.3800 mark. This might simply be a short-term retracement earlier than a bullish continuation.

Get your fingers on the just lately launched U.S. Greenback This autumn outlook at this time for unique insights into the pivotal catalysts that needs to be on each dealer’s radar.

US AND CANADIAN LABOR MARKET DATA

The September US jobs report was launched a short time in the past coming in scorching and properly above expectations. US nonfarm payrolls elevated by 336K in September 2023, properly above an upwardly revised 227K in August, and beating market forecasts of 170K. It’s the strongest job achieve in eight months, and properly above the 70K-100K wanted monthly to maintain up with the expansion within the working-age inhabitants, signaling that the labor market is progressively easing however stays resilient regardless of the Fed’s tightening marketing campaign.

On an identical observe, the Canadian economic system created 63.8k jobs for the month of September which can be the best in 8 months. Market expectations had been for a 20k improve however smashed estimates due to a considerable rise in employment within the schooling providers sector which added 66k jobs. The unemployment charge remained resilient holding on the 5.5% in September.

The speedy aftermath of the info releases noticed elevated chances for charge hikes from each the US Federal Reserve and the Financial institution of Canada (BoC). Cash markets worth in a 38% likelihood of a Financial institution of Canada charge hike on October twenty fifth, up from 28% earlier than the roles knowledge.

ECONOMIC CALENDAR AND EVENT RISK AHEAD

The subsequent seven days are dominated by US knowledge earlier than Canadian inflation on the October 17. US inflation is the largest danger occasion to USDCAD within the week forward and needs to be an intriguing one following at this time’s sturdy labor market knowledge. The drop in common hourly earnings does bode properly for the inflation struggle however with a good labor market the concern is that demand could stay elevated and in flip maintain costs excessive.

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TECHNICAL ANALYSIS AND FINAL THOUGHTS

USDCAD

USDCAD lastly broke above the October 2022 long-term descending trendline which suggests the Loonie is buying and selling at its weakest stage to the Dollar in about 7 months. Yesterday’s every day candle shut was a capturing star which hinted at a deep retracement however following at this time’s knowledge a run larger to 1.3900 resistance stage.

Rapid help on the draw back rests at 1.3650 with a break decrease bringing the 20-day MA round 1.3560 into focus. The bullish bias stays intact so long as the 1.3460 swing low isn’t damaged.

USD/CAD Every day Chart

Supply: TradingView, ready by Zain Vawda

IG CLIENT SENTIMENT

Looking on the IG consumer sentiment knowledge and we will see that retail merchants are at the moment web SHORT with 72% of Merchants holding brief positions.

For Full Breakdown of the Every day and Weekly Modifications in Consumer Sentiment as properly Recommendations on How you can use it, Get Your Free Information Under.

— Written by Zain Vawda for DailyFX.com

Contact and comply with Zain on Twitter: @zvawda