USD/CAD to test 1.27 on strong Canadian jobs report – ING

USD/CAD has hovered around 1.28 in the past two sessions after rejecting 1.2900 resistance earlier this week. Today, February’s jobs data will be in focus in Canada. Strong figures could pave the way for more USD/CAD downside, economists at ING report.

Jobs data can help cement April BoC hike bets

“Markets expect a rather solid headline read (around 130K). Special attention will be on wage growth, which had corrected lower to 2.4% YoY in January. A good jobs report today could help markets take a more convincing stance on a Bank of Canada rate hike in April. This should pave the way for more USD/CAD downside.

“USD/CAD could press 1.2700 today – although headlines related to the Russia-Ukraine conflict will continue to play a bigger role for the pair.”

“Longer-term, we expect the Canadian dollar to be one of the better performers and retain sub 1.25 targets for the second half of 2022.”

See – Canada Employment Preview: Forecasts from five major banks, jobs powering back from Omicron blow