The September labour market data for Canada will be published later in the day. In the view of economists at Commerzbank, the loonie is set to remain under pressure amid continued divergence in rate expectations between the Bank of Canada and the Federal Reserve.
“The combination of a strong US labour market and weak labour market data for Canada would probably cause the rate hike expectations for the two central banks to diverge further, driving USD/CAD upwards.”
“The market is likely to lower its rate hike expectations in case of a weak labour market report. In case of a positive labour market surprise, it is likely to adjust them to the upside. However, it seems unlikely to us that the expectations are likely to catch up with those for Fed rate hikes, in particular as we expect a solid US labour market report.”
“We continue to see little hope of the loonie making up ground against USD today in view of a continued divergence in rate expectations, instead it is more likely to record losses.”
See:
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.