USDCAD Analysis
| Performance after Thursday | |||||
| Period | Pct | Chg | Momentum | ||
| Thursday | -0.06% | -9 Pips |  |
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| Week to-date | -0.52% | -75 Pips | |
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| April | -0.99% | -142.7 Pips | |
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Upcoming key events (London Time)
Fri 01:30 PM CAD Labour Force Net Change in Employment
Fri 01:30 PM USD Nonfarm Payroll Employment Fri 01:30 PM USD Average Hourly Earnings (12-mth) Fri 04:25 PM USD Federal Reserve Chair Jerome Powell speech
What happened lately
In the United States, there was a notable decrease in the number of Initial Unemployment Insurance Claims for the week ending March 29, dropping to 219K from the previous figure of 225K, as revised from an originally reported 224K. This decline suggests some stabilization in the labor market, offering a positive sign amid ongoing economic shifts. However, contrasting this positivity, new orders for manufactured goods in the U.S. have seen a reduction. In February, these orders declined to 0.6%, a significant drop from the revised 1.8% in January. It underscores potential challenges in the manufacturing sector, suggesting broader concerns about economic momentum as factories face uncertainties in domestic and global demand.
Regarding the USDCAD exchange rate, the data reflect a cautious mood in the market. The drop of 0.06% to 1.42440 indicates a minor consolidation phase. As traders evaluate these U.S. indicators, they also await significant upcoming events that could influence the currency pair, including the CAD Labour Force Net Change in Employment, and U.S. Nonfarm Payrolls alongside Average Hourly Earnings figures. The labor market data will be crucial in shaping market sentiment and expectations of future monetary policy from the Federal Reserve. These upcoming economic releases, coupled with a speech by Federal Reserve Chair Jerome Powell, may introduce volatility depending on the surprises or alignment with market expectations. Resultantly, any shifts in labor market perceptions and economic outlook from these updates could stir movements in USDCAD, with potential impacts on interest rate differentials influencing the currency pair’s direction.
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What can we expect from USDCAD today?
USDCAD on Thursday dropped -0.06% to 1.42440. Price is below 9-Day EMA while Stochastic is falling.
Updated daily direction for USDCAD looks mixed as the pair is likely to consolidate above 1.41977 (S1).
Looking ahead today, to see upside interest, we prefer to look at price breakout of last daily high of 1.43189 or trades above daily pivot 1.42583. Break above could target R1 at 1.43046. While to the downside, we are looking at 1.41977 (S1) and daily low of 1.42120 as support levels. USDCAD need to break on either side to indicate a short-term bias. A close below 1.42120 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 | 1.44115 |
| R2 | 1.43652 |
| R1 | 1.43046 |
| Daily Pivot | 1.42583 |
| S1 | 1.41977 |
| S2 | 1.41514 |
| S3 | 1.40908 |
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