USD/CAD today, during the Asian session, is trading flat at around 1.3770. This steady movement indicates that traders are awaiting an important update from the United States. Attention now turns to the NFP (Nonfarm Payrolls) – because it reflects labour market statistics for both October and November. Traders have been looking to stay alert and cautious until that report is released, and, henceforth, we’ve seen range-bound conditions in the pair.
Why the U.S. Jobs Numbers Matter
The US NFP report provides a glimpse of how well or how poorly the job market is in the US. This information is worth tracking, as it could sway the future direction of US Federal Reserve interest rate policy. The Fed has already reduced interest rates by 75 basis points this year, primarily in response to signs of a slowing job market. As per predictions, the Unemployment Rate of the USA remained steady at 4.4% during November. The data isn’t providing a positive bias for the greenback, say more losses ahead.
Traders are also waiting for the US Retail Sales and business activity figures to be released along with NFP. Retail Sales should tick up 0.2%, which would point to unchanged consumer spending.
Canadian Dollar Remains Stable
Meanwhile, the Canadian Dollar, on the other hand,, is doing little in response to the latest inflation numbers. Canada’s Consumer Price Index increased by 2.2% on an annual basis, missing expectations slightly. The so-called core inflation, which excludes volatile items, was 2.9%. The Bank of Canada has said that inflation is near its 2 per cent target and is expected to continue to be well-behaved.
All in all, USD/CAD is trading within a well-defined range while markets wait for fresh clues from US data.
