Canada Jobs Report in Focus as Markets Await Key Labour Data

Today's expected range for the Canadian Dollar against the major currencies:

US Dollar        1.3760-1.4010

Euro                1.6030-1.6280

Sterling           1.8580-1.8830

WTI Oil (opening level) $92.97

The CAD/USD is opening at 1.3882 ( 0.7204 )

Statistics Canada will release its Labour Force Survey today, and markets are bracing for quite a steady print. The Unemployment Rate is expected to remain at 6.9% in May, while the Net Change in Employment is forecast to increase by 10K, reversing April’s 17.7K drop.

Bank of Canada is expected to keep its policy unchanged at its June 10 gathering, following four consecutive ‘on hold’ decisions. Governor Tiff Macklem delivered a cautious message at his press conference, keeping the data-dependent stance well in place while allowing for higher rates if energy prices remain elevated.

USD/CAD has been on a steady uptrend since the beginning of May, almost entirely to the tune of developments in the Middle East and dynamics around US government decisions.

The constructive outlook is expected to remain intact while above the 200-day SMA around 1.3810.