Loonie Holds Firm Against USD Amid Jobs Data Uncertainty
The Canadian dollar is maintaining its strength against the US dollar as traders await the release of jobs data from both countries. The Loonie has been supported by higher oil prices and the Bank of Canada's hawkish message, which has underpinned the currency.
Crude oil prices have surged to their highest level since July 24 due to ongoing tensions in the Middle East, particularly in the Strait of Hormuz. This geopolitical risk premium is continuing to influence the price of oil and subsequently the Canadian dollar.
The US dollar has been struggling to gain traction against the Canadian dollar, with the USD/CAD pair consolidating below the 1.3800 mark during the Asian session on Friday. The pair is close to a nearly two-week low, touched the previous day, and spot prices are poised to register heavy weekly losses.
Traders are waiting for the release of jobs data from both countries, which will likely have an impact on monetary policy decisions. According to TD Securities, even a robust labour market print may not be enough to prompt the Fed to hike interest rates in September, unless accompanied by strong inflation data.