Usdcad Climbs Higher

 Usdcad Climbs Higher

Usd/Cad Climbs To 1.3380, Refreshes Weekly High

The USD/CAD is trading close to 1.3380, a 2-week high for the pair. According to experts, the recovery of the DXY allowed the loonie to experience a substantial upside in the last few days.

The USD buyers are now moving more cautiously as they await the NFP report to plan their next move.

Strong Nfp Report Expected

The market forecasts a NFP reading of 170,000 jobs in the last month. This will be a step down from November's data of 199,000. The unemployment rate in the US is also expected to touch 3.8% in the 2023's last month.

Generally, a good NFP report will signal that the Fed doesn't have to rush into rate cuts in March. The reason behind this is that solid job growth will be a sign that inflation is still not brought under control.

The CAD will be looking forward to the labour market data from Canada. The market expects the unemployment rate to go from 5.8% to 5.9% (a change of +0.1%).

The technical chart shows that the USD/CAD trading price is above the Fib retracement of 23.6%, which means the next Fibonacci level will serve as the resistance. In addition, the 50 SMA on USD/CAD also shows an upward slope and is near 1.3310.

The RSI indicator hovers in the 60 to 80 range, which is suitable for the USD but not so much for the CAD. According to one expert, a revisit to the 23.6% level will allow the USD/CAD to test the 1.3410 level and then the 1.3453.

Conversely, a drop under the 1.3180 handle will open the doors to 1.3150 and then 1.3193, which is also low from the 13th of July. It is safe to say that this week's winner was the USD, while the CAD was the loser.

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