USD/CAD Meanders Near Lows Ahead of Employment Data
Having met fresh supply at 1.2900 levels in early Europe, the USD/CAD pair is seen consolidating a sudden downwards spike near 1.2840 region.
USD/CAD slips nearly 50-pips
Currently,
the USD/CAD pair drops -0.08% to 1.2844, retreating slightly from fresh
session lows of 1.2835. The Loonie trade around a flat-line
post-European open as investors turn cautious ahead of the release of
crucial employment data from both the North American economies.
In
April, the Canadian economy is projected to have added only 1,000 new
jobs, while the unemployment rate is expected to rise to 7.2%. While
from the US docket, markets are expecting a robust 200,000 increase in
the US jobs coupled with a 0.3% gain in hourly wages.
Further,
subdued trading seen in the oil prices also fails to provide fresh
impetus to the Canadian dollar versus its US counterpart, as focus now
remains on the fundamentals for fresh momentum.
USD/CAD Technical Levels
To
the upside, the next resistances are seen near 1.2886/1.2900 (May 4
High/ round number) and 1.2971 (50-DMA). To the downside, immediate
support might be located at 1.2800 (round number) and below that
1.2750/49 (psychological levels/ daily S2).
