USD/CAD at a Crossroads as Jobs Reports Meet Fed Commentary

The USD/CAD currency pair has been rising steadily over the past few weeks, climbing nearly 3.4% from its August low in a streak of four consecutive weekly gains. As it faces the next test, both U.S. and Canadian labor market data are due out, with expectations for a print of about 84,000 jobs added in the U.S. nonfarm payrolls report.

Michael Boutros, Senior Market Analyst at StoneX Media, notes that the unemployment rate is expected to hold steady at 4.1%, and that the report will also include core personal consumption expenditures data, where both core readings are expected to tick higher. This comes alongside a run of Federal Reserve officials, including Bowman, Barr, Goolsbee, Williams, and Cook.

The Canada employment report is also set to land on a USD/CAD pair that has risen on 13 of the last 14 days, with each of the last three seven-day advances in the pair followed by at least a one-day pause. Boutros advises staying nimble around this time period due to the potential for data surprises from both sides of the border.