CAD depreciates as investors await the Canadian Employment report

Today's expected range for the Canadian Dollar against the major currencies:

US Dollar         1.2750-1.2850

Euro                 1.5300-1.5400

Sterling            1.7500-1.7600

The US Dollar index is marginally stronger overnight as the North American markets get ready for the US and Canadian Employment reports. The market consensus for the US number is for growth last month of over 100K jobs but the opposite in expected in Canada with a drop of over 40K jobs due to the new lockdowns after Christmas.

Actual Number Consensus Forecast

CAD Employment 213K -47.5K

US Employment 49K 104K

Both numbers have come in on the weaker side with the Canadian job losses much higher than the expectation showing how much the Canadian economy has been affected by the most recent lockdown in Ontario. The US number while showing job growth is well below the market consensus as well so the US Dollar is also losing a bit of ground to the Euro and Pound.

As I write USD.CAD remains stable but the Loonie is losing considerable ground to the other currencies on the back of the weaker US Dollar. I would think at some point USD.CAD will also move higher so I look for the exchange pair to trade higher throughout the day and the Loonie to lose a bit of value.