15 Jan 2014
USD/CAD slides from session highs
FXstreet.com (London) - USD/CAD has sold off from overbought territory after broad dollar bullishness.
The dollar was hit on Friday when weaker-than-expected non-farm payroll numbers raised questions over the future pace of the Federal Reserve's tapering of its monthly asset purchase programme. However, solid data in the interim has steadied nerves with the dollar pegging back it's sharp NFP losses. Data released today performed consistently, with Empire State manufacturing and food and energy producer price numbers all exceeding expectations.
Dovish Canadian expectations
While US data since Friday has helped to bolster relatively hawkish monetary expectations, there has been little to redeem Canada's poor job numbers. Weak job growth and inflation has increased speculation that the central bank will move to cut rates. While Bank of Canada Governor Stephen Poloz said last week he’s under no pressure to raise the benchmark rate, he has said that there remains room to cut if needed.
USD/CAD is currently trading at CAD1.0946, falling from highs at CAD1.0991, near flat on the session.
The dollar was hit on Friday when weaker-than-expected non-farm payroll numbers raised questions over the future pace of the Federal Reserve's tapering of its monthly asset purchase programme. However, solid data in the interim has steadied nerves with the dollar pegging back it's sharp NFP losses. Data released today performed consistently, with Empire State manufacturing and food and energy producer price numbers all exceeding expectations.
Dovish Canadian expectations
While US data since Friday has helped to bolster relatively hawkish monetary expectations, there has been little to redeem Canada's poor job numbers. Weak job growth and inflation has increased speculation that the central bank will move to cut rates. While Bank of Canada Governor Stephen Poloz said last week he’s under no pressure to raise the benchmark rate, he has said that there remains room to cut if needed.
USD/CAD is currently trading at CAD1.0946, falling from highs at CAD1.0991, near flat on the session.