USD/CAD traders focus on the US and Canadian labour market
Source: Economic Events April 5, 2019 - Admiral Markets' Forex Calendar
After the United States NFPs increased by just 20,000 in February - well below market expectations of 180,000 - following an upwardly revised 311,000 rise in January, we can only speculate that further disappointing readings of US labour data are yet to come. ADP data, usually a good indication for the NFPs, also came in below expectations on Wednesday, printing at just 129,000 against the 170,000 expected.
Nevertheless, the US dollar didn't take on any significant bearish momentum, not just in response to this, but additionally, the ISM Employment index saw a dip from 55.9 points from 55.2 points after the prior month.
This can probably be considered a sign of USD strength. However, looking at the USD/CAD and expectations of subdued CA employment change (markets currently expect the Canadian economy to report that they have added only 1,000 jobs in March), it seems as if we could draw a bullish picture, with focus on the region around 1.3470.
If today's data points towards this region, a break higher in the coming days could occur, preparing USD/CAD for a stint up to 1.3670/3700.
But even if the data sets from the two countries do not deliver the fuel for such a stint, trading above the superordinate trend line on a daily time frame keeps USD/CAD technical picture bullish:
Source: Admiral Markets MT5 with MT5-SE Add-on USD/CAD Daily chart (between January 14, 2018, to April 4, 2019). Accessed: April 4, 2019 at 10:00pm GMT - Please note: Past performance is not a reliable indicator of future results, or future performance.
In 2014, the value of the USD/CAD increased by 9.4%, in 2015, it increased by 19.1%, in 2016, it fell by 2.9%, in 2017, it fell by 6.4%, in 2018, it increased by 8.4%, meaning that after five years, it was up by 28.4%.
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