10 Jan 2014
USD/CAD drift up ahead of US and Canadian employment numbers
FXstreet.com (London) - USD/CAD is up slightly on the day after trading in a channel so far. Though most of the market focus is on the US non-farm payroll numbers, due at 13:30 GMT, Canadian unemployment data will also be released at the same time.
Canada downside risks
Consensus expectations for the Canadian data are bearish at 14k jobs in December, with risks to the downside. The unemployment rate is expected to remain at 6.9 percent. While Canada was hit by an ice storm, the survey was completed before the storm hit, meaning any disappointing data will be compounded.
US optimism could be set for a fall
On the other side of the border, things are looking more optimistic, with expectations of recent momentum to continue as part of a strengthening US economic outlook. While consensus expectations are at 196k, non-farm Friday exuberance has begun pointing to a higher print. With consensus expectations high, the downside risks are ramped up for any miss.
USD/CAD is currently trading at CAD1.0857 after a slight breakout from the CAD1.0840-1.0850 range that has held the pair since the open. USD/CAD is currently up 0.11 percent, but the biggest risks lay to the downside.
Canada downside risks
Consensus expectations for the Canadian data are bearish at 14k jobs in December, with risks to the downside. The unemployment rate is expected to remain at 6.9 percent. While Canada was hit by an ice storm, the survey was completed before the storm hit, meaning any disappointing data will be compounded.
US optimism could be set for a fall
On the other side of the border, things are looking more optimistic, with expectations of recent momentum to continue as part of a strengthening US economic outlook. While consensus expectations are at 196k, non-farm Friday exuberance has begun pointing to a higher print. With consensus expectations high, the downside risks are ramped up for any miss.
USD/CAD is currently trading at CAD1.0857 after a slight breakout from the CAD1.0840-1.0850 range that has held the pair since the open. USD/CAD is currently up 0.11 percent, but the biggest risks lay to the downside.