By Kenny Fisher
USD/CAD has posted slight gains in Tuesday's North American session, as the pair trades in the mid-1.06 range. In the US, employment numbers continue to impress, as JOLTS Job Openings jumped last month. There are no Canadian releases on Monday.
US employment numbers continue to look sharp. On Tuesday, JOLTS Job Openings jumped to 4.64 million, easily beating the estimate of 4.53 million. This follows excellent figures from Nonfarm Payrolls and Unemployment Rate. Nonfarm Payrolls, one of the most important indicators, bounced back in June with a strong gain of 288 thousand new jobs. This crushed the estimate of 214 thousand. There was more good news from the Unemployment Rate, which continues to move downward. The indicator dipped to 6.1%, its lowest level since September 2008. The strong employment numbers are sure to increase speculation about an interest rate hike by the Federal Reserve, and remarks by Fed policymakers will be under the market microscope.
Canadian key data was a mix on Monday. Ivey PMI has been steadily losing ground since February, and the downward trend continued in June. The index fell to 46.9 points, its lowest level since last December. The indicator came in below the 50-point level for a second straight month, indicating contraction. There was better news from Building Permits, which tends to show sharp fluctuations. The key construction indicator surprised the markets with a sharp gain of 13.8%, crushing the estimate of 3.1%. This was the indicator's best showing since last August.
USD/CAD for Tuesday, July 8, 2014
USD/CAD July 8 at 15:20 GMT
USD/CAD 1.0670 H: 1.0695 L: 1.0662
- USD/CAD edged higher late in the Asian session but surrendered these gains in European trading. The US dollar is under pressure in the North American session.
- On the upside, 1.0678 is under strong pressure and was briefly breached earlier in the day. 1.0775 is stronger.
- 1.0572 is providing the pair with strong support.
- Current range: 1.0572 to 1.0678
Further levels in both directions:
- Below: 1.0572, 1.0414, 1.0271 and 1.0182
- Above: 1.0678, 1.0775, 1.0852 and 1.0961
OANDA's Open Positions Ratio
USD/CAD ratio is unchanged in Tuesday trade, as the ratio has remained static since late last week. This is consistent with the lack of movement currently exhibited by the pair. The ratio has a majority of long positions, indicative of trader bias towards the US dollar gaining ground.
- 11:30 US NFIB Small Business Index. Estimate 97.3 points. Actual 95.0 points.
- 14:00 US JOLTS Job Openings. Estimate 4.53M. Actual 4.64M.
- 17:45 US FOMC Member Narayana Kocherlakota Speaks.
- 19:00 US Consumer Credit. Estimate 21.3B.
*Key releases are highlighted in bold
*All release times are GMT
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.