USD/CAD Pair Holds Steady Ahead of US NFP Report
The USD/CAD pair remained in a tight range as market participants awaited the US nonfarm payrolls (NFP) report. The Federal Reserve Chair’s comments on the resilience of the US economy in comparison to September added to the caution in the market.
Private employers in the US added 146,000 jobs in November, slightly below expectations. Despite upbeat data from Canada, there is little impact on the outlook for potential rate cuts by the Bank of Canada.
Market Sentiment and Forecast
Traders chose to stay on the sidelines leading up to the release of the NFP report, even after Powell’s speech earlier in the week. The likelihood of a Fed rate cut in December is high, but the greenback remained relatively stable despite mixed economic indicators.
Focus remains on Friday’s NFP report, with economists predicting new job additions and an unemployment rate. In contrast, Canada saw expansion in its services sector, but the market still speculates on potential rate cuts by the Bank of Canada.
Technical Analysis and Key Events
On the technical side, the USD/CAD price is hovering above the 30-SMA with a bullish bias. The price action suggests a potential retest of the resistance level, or a reversal if it breaks below the SMA.
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Source : www.forexcrunch.com