US Labor Data Boosts USD/CAD as Canadian Dollar Struggles with Weak Oil Prices
The US Dollar (USD) is holding strong against its Canadian counterpart, USD/CAD, due to better-than-expected employment data from the US Department of Labor. Initial Jobless Claims fell to 196K in the week ending September 12, below market expectations of 208K and down from 206K in the previous week.
The four-week moving average of Initial Jobless Claims also declined by 2.75K to 203.25K, indicating a resilient US labor market. This news has reinforced expectations that the Federal Reserve (Fed) will maintain a restrictive monetary policy stance, which is likely to support USD/CAD.
The Canadian Dollar, on the other hand, remains under pressure due to weak Oil prices. The recent Oil price rally has lost momentum following reports that Saudi Arabia expects to restore part of its East-West pipeline capacity within days after recent drone strikes on the infrastructure.