Friday, August 1, 2014

Canadian dollar,USD/CAD

The Canadian dollar continues to travel south, as USD/CADÂ trades in the low-1.09 range on Friday. In the US, the markets will have plenty of data to sort through, with three key events later in the day – Nonfarm Employment Change, Unemployment Rate and ISM Manufacturing PMI. We’ll also get a look at consumer confidence levels, with the release of UoM Consumer Sentiment. There are no Canadian releases on Friday.
Although the US jobs report disappointed, it's not enough to stall the greenback's rally and the market is eyeing C$1.1000 as a key level on , says Blake Jespersen, managing director of foreign exchange at BMO Capital Markets. "I think we'll see a lot of hedging activity at 1.10. That seems to be where a lot of the Canadian exporters are targeting." First though, the pair will have to breach the C$1.0950 barrier. Jespersen says the "overwhelming theme" at the moment is to buy USD/CAD on dips. He pegs support for the pair at 1.0880. USD/CAD last at 1.0906, little changed from yesterday's close.