CAD hovers around 1.35 – Scotiabank

Canadian jobs data may not matter as much to CAD today. Consensus anticipates a “standard” 25,000 job gain, but a small increase in unemployment (to 6.5%) and still high wage growth (4.8%).

Canadian jobs and US data follow

“This is the kind of thing that will prevent the market from pricing in anything more aggressive than the BoC’s 25bp cuts for now. There is no obvious need at this point for the BoC to accelerate the pace of tapering. US jobs data is clearly more important to the near-term direction of the USD and USD/CAD – weak US figures will pull USD/CAD back to the 1.34 area. Data on expectations or better means USDCAD rises to 1.36+.”

“Short-term spot trends look quite warm, with the USD dipping around the 1.35 area in the last day or so. USD losses from the mid-week peak in the upper 1.35s give the broader technical picture a bit of a downside, however, and the spot rests just above key short-term support at 1.3490 (potential bear base) as the session in the Americas from the North it goes. Loss of support at 1.3490 should see the USD retest at least the low area of ​​1.34. Resistance is 1.3580 and 1.3635.”