- Canadian Dollar stretched into a third day of gains against the Greenback.
- Canada is absent from the economic calendar on Thursday.
- US markets are also shuttered for the holiday, leaving a lull in market volume.
The Canadian Dollar (CAD) rose into a third consecutive day of gains against the US Dollar as Thursday markets grind away quietly. A lack of notable data has left both the CAD and the USD adrift, giving market participants a breather before Friday’s heady US Nonfarm Payrolls (NFP) jobs data dump.
Canada and the US are both absent from the economic calendar on Thursday. US markets are darkened for the Independence Day holiday, while Canada has nothing useful to say. Friday is set to be a volatile capstone on the trading week, with US NFP set to eclipse Canadian labor figures entirely.
Daily digest market movers: Canadian Dollar eases into higher gains on tepid Thursday
- Market focus will shift to Friday amid a flat Canadian release schedule and US holiday.
- June’s Canadian Net Change in Employment is expected to ease to 22.5K from the previous 26.7K.
- The Canadian Unemployment Rate is forecast to tick higher to 6.3% from 6.2%.
- Annualized Canadian Average Hourly Wages for the year ended in June will also be published. Canadian wages last printed 5.2% YoY growth.
- US NFP net job gains are forecast to ease to 190K in June, down from the previous 272K.
- US Average Hourly Earnings are also expected to moderate further, forecast to tick down to 0.3% MoM in June, down from the previous 0.4%.
Canadian Dollar PRICE Today
The table below shows the percentage change of Canadian Dollar (CAD) against listed major currencies today. Canadian Dollar was the strongest against the US Dollar.
USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
---|---|---|---|---|---|---|---|---|
USD | -0.21% | -0.14% | -0.35% | -0.21% | -0.33% | -0.29% | -0.18% | |
EUR | 0.21% | 0.08% | -0.10% | 0.00% | -0.09% | -0.07% | 0.08% | |
GBP | 0.14% | -0.08% | -0.21% | -0.07% | -0.18% | -0.15% | -0.05% | |
JPY | 0.35% | 0.10% | 0.21% | 0.14% | 0.02% | 0.06% | 0.16% | |
CAD | 0.21% | -0.01% | 0.07% | -0.14% | -0.11% | -0.05% | 0.02% | |
AUD | 0.33% | 0.09% | 0.18% | -0.02% | 0.11% | 0.06% | 0.14% | |
NZD | 0.29% | 0.07% | 0.15% | -0.06% | 0.05% | -0.06% | 0.08% | |
CHF | 0.18% | -0.08% | 0.05% | -0.16% | -0.02% | -0.14% | -0.08% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Canadian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent CAD (base)/USD (quote).
Technical analysis: Canadian Dollar claws back further ground from Greenback
The Canadian Dollar (CAD) is shifting moderately higher on Thursday, climbing around one-fifth of one percent against the US Dollar (USD). The CAD also gained a scant one-tenth of one percent against the Pound Sterling (GBP) and the Swiss Franc (CHF), but shed around the same against the recovering Japanese Yen (JPY).
USD/CAD is grinding lower, dropping away from Thursday’s early high bids around 1.3640, heading for the 1.3600 handle. A clean downside break of 1.3600 sets the pair up for a renewed challenge of the 200-day Exponential Moving Average (EMA) at 1.3588. Daily candles have collected a significant amount of bearish pressure from a supply zone baked in above 1.2750, and USD/CAD bids are getting squeezed into a high-pressure zone just above long-term moving averages.
USD/CAD hourly chart
USD/CAD daily chart![](https://i0.wp.com/editorial.fxstreet.com/miscelaneous/USD_CAD-638557097094351561.png?w=788&ssl=1)
Nonfarm Payrolls FAQs
Nonfarm Payrolls (NFP) are part of the US Bureau of Labor Statistics monthly jobs report. The Nonfarm Payrolls component specifically measures the change in the number of people employed in the US during the previous month, excluding the farming industry.
The Nonfarm Payrolls figure can influence the decisions of the Federal Reserve by providing a measure of how successfully the Fed is meeting its mandate of fostering full employment and 2% inflation. A relatively high NFP figure means more people are in employment, earning more money and therefore probably spending more. A relatively low Nonfarm Payrolls’ result, on the either hand, could mean people are struggling to find work. The Fed will typically raise interest rates to combat high inflation triggered by low unemployment, and lower them to stimulate a stagnant labor market.
Nonfarm Payrolls generally have a positive correlation with the US Dollar. This means when payrolls’ figures come out higher-than-expected the USD tends to rally and vice versa when they are lower. NFPs influence the US Dollar by virtue of their impact on inflation, monetary policy expectations and interest rates. A higher NFP usually means the Federal Reserve will be more tight in its monetary policy, supporting the USD.
Nonfarm Payrolls are generally negatively-correlated with the price of Gold. This means a higher-than-expected payrolls’ figure will have a depressing effect on the Gold price and vice versa. Higher NFP generally has a positive effect on the value of the USD, and like most major commodities Gold is priced in US Dollars. If the USD gains in value, therefore, it requires less Dollars to buy an ounce of Gold. Also, higher interest rates (typically helped higher NFPs) also lessen the attractiveness of Gold as an investment compared to staying in cash, where the money will at least earn interest.
Nonfarm Payrolls is only one component within a bigger jobs report and it can be overshadowed by the other components. At times, when NFP come out higher-than-forecast, but the Average Weekly Earnings is lower than expected, the market has ignored the potentially inflationary effect of the headline result and interpreted the fall in earnings as deflationary. The Participation Rate and the Average Weekly Hours components can also influence the market reaction, but only in seldom events like the “Great Resignation” or the Global Financial Crisis.
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