The Canadian job market is still red hot. While the jobs data may do little to assuage the BOC’s concern about whether they have done enough on rate hikes, the CAD remains a challenge in the short term, report economists at TD Securities.
CAD will remain defensive at crossroads
“The Canadian labor market continues to perform at full capacity with no sign of mean reversion after 150,000 jobs were added in January. This number will not change that risks are much more fluid around the Fed than the BOC.”
“In addition, we think that a higher terminal federal funds rate could raise the perceived risk of a hard landing or financial crash. That, coupled with domestic debt imbalances and fragile risk sentiment, should keep the CAD at defensive for now.”
“We see support emerging at 1.3750 for USD/CAD, and CAD skewed to the trailing crosses.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
