Loonie on the rise ahead of BOC survey due later on Monday, which analysts anticipate it will reflect a positive economic outlook.
The CAD continued to add pips as Canada’s December jobs report showed a significant drop in unemployment, which reached its lowest rate in more than 4 decades (5.7%). This positive figure pushed BOC rate hikes higher, already priced in the market. Hence, the BOC survey is expected to show a rise in profitability for January of 82.5% from 45.2% in the previous week.
Moved by the optimistic economic outlook, the Loonie continued to strengthen its rising stance, starting the day impetuously against its major greenback peer. Following a daily open at 1.24262, USDCAD added gains consistently, hovering now above 1.24354 levels, away from the second line of support and en route to S1 at 1.2372.
In Asia Pacific, the Aussie tumbled on Monday, shedding pips against all of its major peers. In the absence of any catalyst for the change in trend, there’s a high chance that the downturn might have been a corrective move after recent gains in the AUD. CFTC data showing an 11-month net-short positioning in futures may have had the potential to provide some impetus.
In Europe, the situation was not rosier for the Aussie. After starting the day on the back foot at 0.78355 (open daily), Aussie-dollar hovers above 0.78356 as of writing.
Greenback Eyes Fed-Talks
Greenback eyes Fed-talks, having bulls and bears lying in wait for the speeches of the 3-big central bank’s branch presidents in Atlanta, Boston and San Francisco. The consensus is positive, revolving around one rate hike, leaving plenty of room for hawkish remarks to push the greenback up.
Consequently, EURUSD started the day at 1.19670 and hovers above 1.19600, below the S3 line.
GBPUSD opened at 1.35527 and is trading at 1.35520, while USDJPY opened at 112.977 and added a few pips, trading at 113.016.