- Analytics
- News and Tools
- Market News
- CAD: Watch for more jobs weakness – ING
CAD: Watch for more jobs weakness – ING
The Bank of Canada delivered a widely expected 25bp rate cut on Wednesday. The BoC event did not move markets significantly, and the USD/CAD dive shortly after the announcement was instead mostly due to soft US JOLT figures, ING’s FX strategist Francesco Pesole notes.
NFP can have a larger impact on USD/CAD than Canadian payrolls
“Today, Canada releases jobs figures at the same time as the US. The consensus for headline Canadian payrolls is 25k, in line with the last few months. The fact that consensus has not adjusted lower following two negative prints tells us it is not a really reliable benchmark for expectations.”
“Incidentally, looking at the unemployment figure is likely more informative at this stage. We expect, in line with consensus, an increase from 6.4% to 6.5%. Remember, this was 5.7% in January, and another tick higher would endorse market pricing for more back-to-back Bank of Canada cuts.”
“The US payrolls can have a larger impact on USD/CAD than Canadian payrolls. However, we remain of the view that the pairs look increasingly cheap as they approach the 1.345 mark. Ultimately, the Canadian dollar should underperform most other high-beta peers if soft US macro news comes through.”
© 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.
Bank transfers
