USD/CAD fell again on Thursday as traders continue to buy the “risk on” trade. The USD/CAD will particularly interesting today as it has an interesting dynamic when it comes to the US jobs market. Since the US is roughly 80% of the market for Canadian exports, if the US does poorly, it can often hurt the Canadian economy. If we see a weak Non-Farm Payroll number, the pair could rise. Conversely, if the number is good – we could see a continuation of the fall. Parity seems to be supportive at this point, and we wouldn’t expect any fall to go much further at this point. A daily close above 1.03 is very bullish.
Written by FX Empire