Canadian Dollar holds below 1.4000 as US and Canada jobs data loom
USD/CAD rebounds on Thursday after briefly slipping below the key 1.4000 support level, as the US Dollar (USD) snaps a two-day losing streak with traders repositioning ahead of Friday's employment reports from the United States (US) and Canada.
The Canadian Dollar found itself trading below the critical 1.4000 level as traders awaited key US and Canadian employment data for Friday. The pair managed a rebound to around 1.4030, a 0.12% gain on the day. US Nonfarm Payrolls for July are anticipated to show 80,000 jobs added, up from 57,000 in June, with the Unemployment Rate remaining steady at 4.2%.
Following recent softer labor-market releases, the NFP report will be closely monitored. While Initial Jobless Claims rose slightly to 199K from 198K, they fell below the 202K prediction. In Canada, employment is expected to increase by 15,000, following an 18.2K jump in June, with the Unemployment Rate expected to stay unchanged at 6.5%.
Tensions in the Middle East persist as Iran and Oman near an agreement for a temporary shipping route through the Strait of Hormuz, though no final deal has been reached. Energy-related inflation risks remain a concern as Oil prices recover, with West Texas Intermediate (WTI) Crude Oil trading near $77.00 per barrel, up nearly 3.5% on the day.
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