USD/CAD started the Friday session quietly, but has posted losses in the North American session. The pair is currently trading at 1.3255, down 0.40% on the day. On the release front, there are no U.S. events. The Canadian economy created 66,800 jobs in January, crushing the estimate of 6,500. The unemployment rate edged up to 5.8% in January, compared with 5.7% a month earlier.
It’s been a rough week for the Canadian dollar, which has slipped 1.2%. Will the slide continue next week? Investors are increasingly concerned that the U.S and China will not be able to reach a trade deal. On Thursday, U.S. President Donald Trump said that he had no plans to meet with Chinese President Xi before March 2, when further U.S. tariffs are scheduled to be imposed against China. This has raised concerns that a trade deal will not be reached prior to the March 2 deadline. Trump’s remarks chilled risk appetite, sending U.S. equity markets and the Canadian dollar lower on Thursday.
The Bank of Canada appears to have taken page out of the Federal Reserve’s playbook, and is expected to ease monetary policy this year after aggressively raising rates in 2018. On Wednesday, BoC Deputy Governor Tim Lane said that Canada’s fundamentals were strong and unemployment was at historically-low rates. However, Lane noted that the Canadian dollar was under pressure due to lower oil prices, a soft housing market and a decline in business investment due to uncertainty over U.S. trade policies.
Friday (February 8)
*All release times are EST
*Key events are in bold
USD/CAD for Friday, February 8, 2019
USD/CAD, February 8 at 9:05 EST
Open: 1.3308 High: 1.3329 Low: 1.3232 Close: 1.3255
USD/CAD ticked higher in the Asian session and was flat in European trade. The pair has posted losses in North American trade
Further levels in both directions:
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
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