USD/CAD in narrow range near 1.0930

FXStreet (Edinburgh) - After bottoming near 1.0915 during the European morning, the USD/CAD is trying to pick up pace although 1.0930 seems to be a tough barrier so far.

USD/CAD coming down from 1.0950

Spot initiated a leg lower after overnight tops in the proximity of 1.0950 on Friday, along with a softer tone from the US dollar. Key labour market figures will take centre stage in the Canadian docket today, with consensus calling for an increase in the employment by 20.0K and the jobless rate to remain intact at 7.1% in July. In light of the upcoming data releases, Stephen Gallo, European Head FX Strategy at BMO, commented, “We’d normally say that a very strong report could spark even further CAD buying. But the main caveat is that with yields dropping across the globe, CAD strength on a better number will probably be a bit more tempered than otherwise”.

USD/CAD significant levels

The pair is now losing 0.04% at 1.0922 and a breach of 1.0907 (low Aug.7) would expose 1.0878 (100-d MA) and then 1.0850 (low Jul.30). On the upside, the next hurdle aligns at 1.0949 (50% of 1.1279-1.0620) ahead of 1.0986 (high Aug.6) and finally 1.1007 (high May 2).