NFP Fuels Dollar Surge, Canadian Jobs Drag Loonie
Action Insight Mid-Day Report 4-5-24 |
NFP Fuels Dollar Surge, Canadian Jobs Drag Loonie |
Dollar rises broadly in early US session in response to surprisingly strong non-farm payroll data. Dollar's ascent is notably pronounced the Canadian Dollar, which simultaneously grapples with its own disappointing employment figures. But against others, the overall strength of the greenback remains somewhat contained for now. The picture could shift dramatically as the NFP report catalyzes a significant surge in US treasury yields and exerts downward pressure on stock futures. Should the turmoil in stocks and bonds persist, Dollar may well gather substantial momentum later in the session. As for the week at this point, Australian Dollar remains the standout performer, followed by New Zealand Dollar. Dollar's ascent post-NFP has positioned it as the third strongest currency for the now. Conversely, Canadian Dollar finds itself at the bottom of the performance ladder, with the Swiss Franc not far ahead. Euro and British Pound re mixed, positioned in the middle alongside Japanese Yen. But there is room for the picture to change drastically before weekly close... |
USD/CAD Mid-Day Outlook Daily Pivots: (S1) 1.3495; (P) 1.3527; (R1) 1.3576; More... USD/CAD's rally from 1.3716 resumed by breaking through 1.3613 resistance and intraday bias is back on the upside. Current rise should target channel resistance at 1.3664 first. Sustained break there would prompt upside acceleration towards 1.3897 resistance next. For now, near term outlook will stay bullish as long as 1.3477 support holds, in case of retreat. | |
GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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23:30 | JPY | Household Spending Y/Y Feb | -0.50% | -2.80% | -6.30% | 00:30 | AUD | Trade Balance (AUD) Mar | 7.28B | 10.50B | 11.03B | 10.06B | 05:00 | JPY | Leading Economic Index Feb P | 111.8 | 111.6 | 109.9 | 109.5 | 06:00 | EUR | Germany Factory Orders M/M Feb | 0.20% | 0.60% | -11.30% | -11.40% | 06:00 | EUR | Germany Import Price Index M/M Feb | -0.20% | -0.10% | 0.00% | 06:45 | EUR | France Industrial Output M/M Feb | 0.20% | 0.50% | -1.10% | -0.90% | 07:00 | CHF | Foreign Currency Reserves (CHF) Mar | 715B | 678B | 08:30 | GBP | Construction PMI Mar | 50.2 | 49.8 | 49.7 | 09:00 | EUR | Eurozone Retail Sales M/M Feb | -0.50% | -0.30% | 0.10% | 0.00% | 12:30 | USD | Nonfarm Payrolls Mar | 303K | 205K | 275K | 270K | 12:30 | USD | Unemployment Rate Mar | 3.80% | 3.90% | 3.90% | 12:30 | USD | Average Hourly Earnings M/M Mar | 0.30% | 0.30% | 0.10% | 0.20% | 12:30 | CAD | Net Change in Employment Mar | -2.2K | 34.5K | 40.7K | 12:30 | CAD | Unemployment Rate Mar | 6.10% | 5.90% | 5.80% | 14:00 | CAD | Ivey PMI Mar | 54.2 | 53.9 |
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