USDCAD Analysis
| Performance after Wednesday | |||||
| Period | Pct | Chg | Momentum | ||
| Wednesday | -0.09% | -13.4 Pips |  |
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| Week to-date | -0.53% | -76.5 Pips |  |
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| February | -1.27% | -184.4 Pips | |
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Upcoming key events (London Time)
Thu 10:00 PM CAD Bank of Canada’s Governor Tiff Macklem speech Fri 01:30 PM CAD Labour Force Net Change in Employment
Fri 01:30 PM USD Nonfarm Payroll Employment
What happened lately
The U.S. Job Openings and Labor Turnover Survey (JOLTS) revealed a decline in job openings to 7.6 million in December, a decrease from the previous month’s figure of 8.156 million. This suggests a cooling in the labor market as openings have reduced significantly. Alongside this, U.S. new orders for manufactured goods also fell, recording a 0.9% decrease in December following a 0.4% decline in November. The revision of the November data to a larger decline of -0.8% instead of the initially reported -0.4% further indicates a downward trend in manufacturing orders, highlighting weakness in the manufacturing sector.
Regarding the USD/CAD exchange rate, the decrease in U.S. job openings and manufacturing orders suggests a softer economic outlook for the U.S. This could lead to a bearish sentiment for the U.S. dollar as investors might anticipate a dovish stance from the Federal Reserve due to slowing economic momentum. Additionally, with the Bank of Canada Governor Tiff Macklem set to speak and Canadian employment data due soon, any positive indicators from Canada could further weigh on the USD/CAD, pushing the rate lower. The market will closely watch these developments, particularly if the data contrast sharply with the current U.S. economic trajectory.
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What can we expect from USDCAD today?
USDCAD on Wednesday dropped -0.09% to 1.43086. Price is below 9-Day EMA while Stochastic is falling.
Updated daily direction for USDCAD looks bearish as the pair posted lower in Wednesday trading session.
Looking ahead for the day, immediate support level is at S1 1.42703 with break below could see further selling pressure towards S2 at 1.42321. To the upside, with the current momentum bearish, we prefer to look at breakout of the recent daily high of 1.43442 as a potential indicator of buying interest. Failure to break the resistance level would continue to echo bearish sentiment. A close below 1.42690 would indicate selling pressure.
For the week to-date, take note that USDCAD is mixed as compared to the prior week.
Key levels to watch out:
| R3 | 1.44207 |
| R2 | 1.43825 |
| R1 | 1.43455 |
| Daily Pivot | 1.43073 |
| S1 | 1.42703 |
| S2 | 1.42321 |
| S3 | 1.41951 |
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