October 8, 2021

Don't Remember NFP Je, Canadian Employment Data Needs Attention Too!

 The Canadian dollar traded stronger against the greenback, supported by the strengthening of crude oil prices and the slow -moving US dollar ahead of the US NFP.

Entering the European session, the loonie traded around 1.2550 against the US dollar, not far from the four -week high it reached at 1.2540.

The greenback’s movement was limited as investors took precautionary measures while awaiting the release of NFP employment data.

Improving market sentiment also supported the loonie dollar, especially after an agreement between Democrats and Republicans in the U.S. Congress was reached to raise the debt ceiling to $ 408 billion by early December.

Meanwhile, the loonie also took advantage of the strengthening of world crude oil prices which rose to a 7 -year high. Canada is a major producer of commodities, including oil. Therefore, the looni dollar tends to rise as oil prices rise.

As the market focuses on the NFP report, Canadian employment data will also be watched by investors of the USD/CAD currency pair which will also be released during the New York session.

The Canadian economy is expected to add 59,500 jobs in September, down from a previous reading of 90,200. Meanwhile, the unemployment rate is forecast to drop to 6.9% from 7.1% previously recorded.