Canadian Dollar Rises on Strong Job Data Yen and Franc Weakness Persists
| Action Insight Mid-Day Report 2-9-24 |
Canadian Dollar Rises on Strong Job Data, Yen and Franc Weakness Persists |
Canadian Dollar bounces broadly in early US session, bolstered by unexpectedly robust Canadian employment data. This development comes amidst cautious remarks earlier in the week from BoC Governor Tiff Macklem, who tempered expectations by noting that achieving the 2% inflation target would be a gradual process, fraught with persistent risks. The January meeting minutes echoed this sentiment, highlighting concerns over the potential for enduring inflationary pressures and the dangers associated with prematurely easing monetary policy. Today's employment figures would likely provide BoC's more hawkish members with additional justification for maintaining a cautious stance on monetary adjustments. The broader currency market is also reacting to a mild uptick in risk sentiment, which appears to be favoring commodity currencies at large. New Zealand Dollar is currently leading the pack, buoyed by ANZ's forecast that RBNZ will deliver rate hikes in both February and April. Australian Dollar is having a moderate increase as well, albeit at a slower pace compared to its counterparts. The general trend towards strength in commodity currencies contrasts with the ongoing weakness observed in the Swiss Franc and Japanese Yen. Meanwhile, Dollar, Euro, and Sterling are continuing their range-bound trading patterns, reflecting a period of extended consolidation... |
USD/CAD Mid-Day Outlook Daily Pivots: (S1) 1.3440; (P) 1.3467; (R1) 1.3485; More... USD/CAD dips notably in early US session but stays well above 1.3357 support. Intraday bias remains neutral first and further rally is in favor. On the upside, decisive break of 1.3540/3 will resume the rise from 1.3176. That will also revive that case that whole fall from 1.3897 has completed, and target this resistance. Nevertheless, firm break of 1.3357 support will argue that rebound from 1.3176 has completed, and target this low for resuming whole fall from 1.3897. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
|---|
| 23:50 | JPY | Money Supply M2+CD Y/Y Jan | 2.40% | 2.20% | 2.30% | | 07:00 | EUR | Germany CPI M/M Jan F | 0.20% | 0.20% | 0.20% | | 07:00 | EUR | Germany CPI Y/Y Jan F | 2.90% | 2.90% | 2.90% | | 09:00 | EUR | Italy Industrial Output M/M Dec | 1.10% | 0.50% | -1.50% | -1.30% | | 13:30 | CAD | Net Change in Employment Jan | 37.3K | 15.0K | 0.1K | | 13:30 | CAD | Unemployment Rate Jan | 5.70% | 5.90% | 5.80% |
|
|
|
