USD/CAD: Firm jobs data may provide a lift to the Loonie – Scotiabank

USD/CAD continues to edge higher after the mid-week test and rejection of the low 1.34 zone. Economists at Scotiabank expect the Loonie to benefit from firm Canadian Employment report.

Resistance at 1.3505/25 looks firm

“The labour market here remains tight and elevated wage data, in particular, is likely to bother policymakers who have noted previously that high wage growth is inconsistent with regaining control of inflation (absent an unheard-of increase in domestic productivity).”

“US/Canada 2Y spreads have narrowed this week – providing some backstop for the CAD – and may narrow a little more if the jobs data are firm.”

“Intraday, resistance at 1.3505/25 looks firm. Support (bearish break-out) is 1.3450.”

See – Canadian Jobs Preview: Forecasts from four major banks, employment may suffer a bit of retreat