CAD Rallies on Oil Gains
The Canadian Dollar has seen plenty of strength over the European morning on Thursday. Despite a weaker risk backdrop, the rally in oil prices this week on the back of recent OPEC+ production cut announcements has seen CAD enjoying a wave of fresh demand. Interestingly, the retail market is holding a heavy USDCAD long position, suggesting risks of a fresh breakdown in the pair.
USD Falls on Weak Data
USD is under pressure today on the back of yet further data weakness yesterday. A softer-than-forecast ISM services number yesterday has increased economic concerns in the US and further diluted the US rates outlook. Against this backdrop, USDCAD has room to fall further, extending the declines seen from the March highs.
CAD Data Due
Today, CAD employment data will be the main focus. Given the expectation for a small increase in the unemployment rate, should data surprise in a positive manner, this could give CAD a fresh boost leading the pair lower into next week. Tomorrow, focus then shifts to US employment data.
Technical Views
USDCAD
The declines from the March higher have seen price breaking down through two key support levels. Most recently, price has broken beneath the 1.3501 level support. While price has bounced a little off lows, the current correction can be viewed as a bear flag, suggesting room for a fresh break lower targeting 1.3280 next.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.