USD/CAD hovers around 1.2800 as investors await Canadian unemployment data
- USD/CAD has witnessed minute gains after oscillating in a range of 1.2750-1.2777.
- The DXY awaits a fresh wave in risk-off impulse.
- Oil prices are not dictating the loonie bears for now.
The USD/CAD pair has witnessed minute gains on Friday after oscillating in a range of 1.2750-1.2777. The pair sensed selling pressure near the round figure of 1.2900 after the greenback bulls lose momentum on improvement in the risk appetite of the market participants.
A back and forth motion in the Tokyo and upcoming London session from the major is highly expected as investors are waiting for Canada’s Unemployment rate and deviation in Employment figures. The Unemployment Rate is likely to print at 6.2% against the previous figure of 6.5%. While the Net Change in Employment may be recorded at 160K in comparison with the prior print of -200.1K.
On the oil front, the carnage in the oil prices has not impacted much on the loonie. USD/CAD has witnessed a plunge despite slippage in the oil prices by almost 18% in the last three trading sessions on easing oil supply concerns. It seems that oil is not dictating the loonie for now.
Meanwhile, the US dollar index is paused at around 98.50 as investors await fresh impetus from the Russia-Ukraine war. Higher print in US Consumer Price Index (CPI) numbers at 7.9% have managed to provide grounds to the DXY but for a fresh rally, as it awaits geopolitical headlines.
Going forward, the headlines from the Russia-Ukraine tussle will have a significant impact on the pair. However, investors will also focus on Michigan Consumer Sentiment Index, which is due on Friday.