CADUSD fell on Friday to deepen losses for the fifth day in a row , the lowest level in two weeks, as the US currency continues to rise against a basket of major and secondary currencies, in addition to the drop in oil prices in the global market, Ahead of Canada’s monthly jobs data, which provides strong evidence of the pace of Canadian economic growth in the first quarter of this year.
By 11:45 GMT USDCAD is trading around the $ 1.3320 level from the opening price of $ 1.3304 after recording the highest of $ 1.3329 since Jan. 25 and the low of $ 1.3298.
On Thursday, the Canadian dollar lost 0.8% versus its US counterpart, its fourth consecutive daily loss, on the back of a broad US currency rally against most major and minor currencies.
The dollar index rose more than 0.1% on Friday, extending its sixth day in a row, reaching its highest level in five weeks at 96.46 points, reflecting the continued rise of the US currency against most currencies.
Oil prices fell more than 1 percent, continuing losses for the second day in a row, on concerns about the growth of global economies, and the Canadian economy depends heavily on oil exports.
The Central Bank of Canada (CBE) held steady interest rates at the January 9 meeting, unchanged at 1.75% in line with most expectations. The bank has already raised interest rates three times in 2018 by 25 basis points each time, Economic growth in the country.
The central bank said it needed to raise interest rates over time to reach a neutral target range for inflation. The pace of interest rate hikes will depend on how the economic outlook evolves, with emphasis on developments in oil markets, Canadian housing policy and global trade policy.
To re-evaluate the possibility of raising Canadian interest rates this year, investors will be looking forward to the release of important data on the labor market in Canada, especially the new jobs data for January, which provides strong evidence on the pace of growth of the Canadian economy during the first quarter Of this year.
The Canadian economy is expected to add 6.5 thousand new jobs in January compared to 9.3 thousand in December, with unemployment rising to 5.7% from 5.6% %.