Expert Analyst Predicts Canadian Dollar (CAD) to Remain Stable in Tight Range, Despite Jobs Data Rebound
Market Analysis: CAD Slips into Sideways Range Trade around 1.3725
According to Scotiabank’s chief FX strategist Shaun Osborne, the Canadian Dollar (CAD) is currently idling in a tight range, with expectations of a rebound in hiring based on upcoming jobs data. The consensus forecast predicts a 25k gain in jobs following a drop in June, with potential risks of a higher print due to historical averages. Despite positive job growth, the unemployment rate is expected to increase slightly to 6.5%, reflecting an expansion in the labor force, while hourly wage growth is projected to ease to 4.8%.
Concerns among policymakers about rising unemployment potentially impacting consumer activity and economic growth have led to adjustments in interest rates. As a result, the USDCAD pair is anticipated to remain well supported in the high 1.36s/low 1.37s range in the near term. Currently, the spot has entered a sideways range trade around retracement support at 1.3725, with short-term momentum favoring USD weakness. Resistance levels are seen at 1.3775/90, while a break below 1.3720/35 could signal a drop back to 1.3675.