USD Strength Set to Continue or Intensify After NFP Release
The US dollar has maintained its strength against the Canadian dollar in recent trading sessions, but market analysts expect this trend to continue or even intensify after the upcoming NFP release.
The current phase of neutrality is expected to give way to renewed buying pressure in USD/CAD if the labor market data shows a stronger-than-expected reading. The US economy has been adding jobs steadily since March, with June's employment report expected to show around 114,000 new jobs, below May's figure but still above 100,000.
The Federal Reserve's probability table indicates a rate hike towards the 4% area in September is still possible, with over 50% chance of a hike. The interest rate differential between the US and Canada remains a significant factor supporting the dollar against the Canadian currency.