Trusted Foreign Exchange and Telecom Partner SINCE 2001

Market insight: US Dollar strengthens ahead of key employment report, the Loonie falters amid economic uncertainty


05.04.2024
Market insight: US Dollar strengthens ahead of key employment report, the Loonie falters amid economic uncertainty

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

US Dollar        1.3500-1.3600

Euro                1.4650-1.4750

Sterling           1.7100-1.7200

 

WTI Oil (opening level) $86.65

 

The US Dollar index is stronger this morning as investors gets set for today's US Employment report, as I mentioned yesterday the market is expecting 200K new jobs to have been created in March but the unemployment rate is expected to stay at the 3.9% level which is a two-year high. The two key reports that the Fed study when determining interest rate policy are the labour market and inflation, a strong number today will lead investors to think they may hold on interest rate cuts and help to push the US Dollar higher. Inflation is on tap next week.

The Canadian Dollar lost a lot of ground to most currencies as USD.CAD moved back higher to trade at 1.3570 (0.7369) before pulling back a little early this morning. The Loonie also lost ground to the other currencies so overall not a good night for the Canadian Dollar despite another jump in the oil price. I read an article on Bloomberg this morning that we may yet again see West Texas oil jump to $100 dollar a barrel which would just push inflation higher and would be a disaster for the Biden campaign. If one thing that hurts any American re-election campaign is high gas prices at the pump so we me be in for tough summer.

Up today is also the Canadian Employment report for March and the Canadian market is expecting 25k new jobs to have been created last month with a bump up in the unemployment rate to 5.9%. We may get a little movement in the Loonie with this report but for the most part the market will be watching the US number.

Stocks finished the day a little lower yesterday and are pointing towards a positive opening but of course everything today will depend on what the employment reports comes back with.



Comment (0)
Name*:
E-mail*:
Comment*:
Security code* (enter digits in the frame)
Security code
Also read
26.03.2021

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

US Dollar         1.2550-1.2650

Euro                 1.4775-1.4875

Sterling            1.7250-1.7350

07.05.2024

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

US Dollar        1.3650-1.3750

Euro                 1.4700-1.4800

Sterling            1.7125-1.7225

 

21.01.2022

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

US Dollar             1.2500-1.2600

Euro                     1.4175-1.4275

Sterling                1.6950-1.7050