With the US dollar on the rise, the USD/CAD is consolidating in a bullish pattern.
As risk appetite returns, rising oil prices limit the Loonie’s upside potential.
The Fed Monetary Policy Report continues to focus on the Canadian jobs figures.
As the focus switches to the Canadian labor market data for the next direction in pricing, USD/CAD is gradually declining around 1.2500, having failed to sustain the upside above 1.2550.
Despite attempts to break above 1.2550 early in the Asian session, the pair has remained in a confined range, extending the consolidative phase after a fall from three-month highs of 1.2591.
The revived purchasing interest in WTI prices, which coincided with a recovery of risk appetite, helped place a floor under the CAD’s downside, limiting USD/CAD gains.
On the other hand, the risk recovery raises US Treasury yields and, as a result, the dollar, cushioning the major’s fall.
As a result, as we approach the Canadian jobs data, the currency pair stays stuck between familiar levels.
Last month, the North American economy is estimated to have added 195,000 jobs, compared to large job losses of 68,000 and 207,100 in May and April, respectively. The unemployment rate is expected to drop to 7.7% in June, down from 8.2% in May.
Read more: Canadian Job Forecast: Will the Dollar/Canadian Dollar Fall During the Summer Hiring Boom?
Encouragement from Canada’s job market statistics could save the CAD, causing the currency pair to correct towards the immediate horizontal trendline support at 1.2485. On the other hand, negative jobs data paired with the dollar’s further gain might reintroduce the 200-DMA resistance level. To gain access to 1.2700, a persistent break above the latter is required./n
