Forex Market: USD/CAD daily outlook

During yesterday’s trading session USD/CAD traded within the range of 1.1006-1.1045 and closed at 1.1035.

At 6:26 GMT today USD/CAD was losing 0.09% for the day to trade at 1.1025. The pair touched a daily low at 1.1024 at 6:37 GMT.

Fundamental view

Canada

The number of the employed people in Canada probably increased by 22 500 last month compared to February, according to the median forecast by experts. In February compared to January the number of the employed dropped by 7 000. Creation of new job positions is considered of utmost importance for consumer spending. In case employment in the country increases more than expected, the loonie would be supported.

The rate of unemployment in Canada probably remained unchanged at 7.0% in March. Lower than expected unemployment would have a bullish effect on Canadian dollar. Statistics Canada is expected to release its official report at 13:30 GMT.

Activity among purchasing managers in Canada probably increased in March, with the correspoding PMI coming in at a seasonally adjusted value of 59.0. In February the index stood at 57.2. This indicator is based on a survey sponsored by Richard Ivey School of Business and Canadian Purchasing Management Association. It encompasses 175 respondents in both public and the private sector, selected in accordance with their geographic location and activity, so that the entire economy is covered. Activity among purchasing managers is closely watched by market players, as managers usually have an early access to data regarding performance of their companies, which could be used as a leading indicator of overall economic activity. Readings above the key level of 50.0 are indicative of expansion in activity. Higher than expected readings of the PMI would bolster demand for the loonie. The official result is due out at 15:00 GMT.

United States

Employers in all sectors of economy in the United States, excluding the farming industry, probably added 200 000 new jobs in March, according to the median forecast by experts, after a job gain of 175 000 in February. Creation of jobs is considered of utmost importance for consumer spending, while the latter is a major driving force behind economic growth. In case of a larger than expected gain in jobs, the US currency would receive a boost.

The rate of unemployment in the United States probably decreased to 6.6% last month from 6.7% in February. In case the rate meets expectations or even drops further, this would have a bullish effect on the greenback. The Bureau of Labor Statistics will release the official numbers at 13:30 GMT.

Technical view

According to Binary Tribune’s daily analysis, in case USD/CAD manages to breach the first resistance level at 1.1051, it will probably continue up to test 1.1068. In case the second key resistance is broken, the pair will probably attempt to advance to 1.1090.

If USD/CAD manages to breach the first key support at 1.1012, it will probably continue to slide and test 1.0990. With this second key support broken, the movement to the downside will probably continue to 1.0973.