Usdcad rises amid positive US economic data and labor market improvements

USDCAD Analysis

Performance after Thursday
Period	Pct	Chg	Momentum
Thursday	0.32%	44 Pips
Week to-date	0.19%	26 Pips
April	0.03%	4 Pips

Upcoming key events (London Time)

Fri 01:30 PM USD Nonfarm Payroll Employment

What happened lately

In the United States, economic indicators showed a positive outlook. The initial unemployment insurance claims for the week ending March 28 dropped to 202K from a previous figure of 210K, reflecting an improvement in the labor market as reported by the Department of Labor. Retail trade figures for February indicated growth, with the overall monthly retail trade increasing to 0.6%, a significant rise from -0.2% in January according to the Census Bureau. The Retail Trade Control Group, which is a component of retail sales feeding into GDP calculations, also saw an increase to 0.5% in February from 0.3% in January. Furthermore, the Retail Trade excluding Automobiles rose by 0.5% in February, compared to 0% in January, highlighting steady consumer spending during this period.

These positive economic data from the United States could potentially have implications for the USDCAD currency pair. With the labor market showing signs of tightening and retail sales figures indicating consumer confidence and spending, the U.S. dollar could gain strength against the Canadian dollar. This might be reflected in an upward trend for USD relative to CAD. As of Thursday, the USDCAD pair rose by 0.32% to 1.39180, indicating some consolidation. However, market participants will be closely watching upcoming events such as the U.S. Nonfarm Payroll Employment report, which is scheduled for release at 01:30 PM. This report may further influence market perceptions of the U.S. economy, potentially resulting in further movements in the USDCAD pair based on employment data outcomes.

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What can we expect from USDCAD today?

USDCAD on Thursday rose 0.32% to 1.39180. Price is above 9-Day EMA while Stochastic is falling.

Updated daily direction for USDCAD looks mixed as the pair is likely to consolidate above 1.38783 (S1).

Looking ahead today, to see upside interest, we prefer to look at price breakout of last daily high of 1.39330 or trades above daily pivot 1.39057. Break above could target R1 at 1.39453. While to the downside, we are looking at 1.38783 (S1) and daily low of 1.38660 as support levels. USDCAD need to break on either side to indicate a short-term bias. A break above 1.39330 may suggest continuation after recent positive movement.

For the week to-date, take note that USDCAD is bullish as the pair continued to trade higher and is up by 0.19% over the past few days.

Key levels to watch out: