Canadian Dollar is having a notable uplift in early US session, propelled by stronger than expected employment data that underscores a persistently robust and tight labor market scenario in the country. The revelations from the data could potentially pose hurdles in the path of Canada's disinflation journey, a process which, according to BoC governor Tiff Macklem, has already slowed. Despite BoC's decision to maintain rates unchanged earlier this week, the potential for future hikes remains, especially if the tight labor market persists and threatens the disinflation progress. While Canadian Dollar displayed strength, US Dollar seemed to be retracting some of its recent gains, landing it among the day's underperformers. This setback for the greenback is potentially a mere digestion of its near-term ascents. Yen, after momentarily benefiting from Japan's verbal interventions, also showed signs of softening. Across the Atlantic, Euro recorded modest declines against its European counterparts. This slip can be attributed to anticipations of economic contraction in Germany - the Eurozone's economic powerhouse - this year, as forecasted by a leading German research institute. Technically, EUR/CAD's fall from 1.4822 resumes after the Canadian job release. This decline is seen as the third leg of the consolidation pattern from 1.4879. Deeper fall is expected as long as 1.4661 resistance holds, to 1.4482 support, or further to 100% projection of 1.4879 to 1.4482 from 1.4822 at 1.4425. In Europe, at the time of writing, FTSE is up 0.11%. DAX is down -0.07%. CAC is up 0.34%. Germany 10-yaer yield is down -0.0005 at 2.611. Earlier in Asia, Nikkei dropped -1.16%. China Shanghai SSE dropped -0.18%. Singapore Strait Times dropped -0.58%. Japan 10-year JGB yield dropped -0.0071 to 0.651. |
