USD/CAD Rebounds Ahead of US and Canada Jobs Data
The Canadian Dollar has held above the key support level of 1.4000 as the US and Canada jobs data loom. The USD/CAD pair rebounded on Thursday after briefly slipping below this level, snapping a two-day losing streak for the US Dollar.
Traders are awaiting employment reports from both countries, with the US Nonfarm Payrolls (NFP) report expected to show that the economy added 80K jobs in July, up from 57K in June. The Unemployment Rate is forecast to hold at 4.2%.
In Canada, employment is projected to rise by 15K following an 18.2K increase in June, with the Unemployment Rate expected to remain unchanged at 6.5%. Tensions in the Middle East are keeping broader market sentiment fragile, with no final deal announced on a temporary shipping route through the Strait of Hormuz.
The lack of a deal and rising tensions have kept energy-driven inflation risks elevated, with Oil prices halting their recent decline. West Texas Intermediate (WTI) Crude Oil trades around $77.00 per barrel, up nearly 3.5% on the day.