News & Analysis
USDCAD Perfect Storm Part 2
USDCAD had a perfect storm overnight as the Canadian trade balance came in way below expectations while US data came in better than expected driving both currencies in opposite directions – the CAD lower and the USD higher, pushing the pair 119 pips higher at one stage.
Tonight sets up as another potential perfect storm for the USDCAD with Canadian and US employment data. Canadian data of late has been disappointing the market combined with USD strength has seen the USDCAD back at AUG 17 levels. Not so long ago September this year, price hit lows not seen since 2015.
If we see a repeat of last night, or September’s NFP, we could see fresh 100 pips rallies for the USDCAD with possibility of price testing 1.2700.
Please note that US and Canadian employment data will be released at 11:30 AEDST tonight.
Here’s a snapshot of last night’s rally post data for USDCAD 4H.