The liquidity in USD/CAD has been low this week with corrective and volatile price action all along. Recently, CAD has had a series of bad economic reports providing an opportunity to USD to gain ground. Ahead of the high impact economic reports on Friday, both currencies in this pair are currently residing in indecision phase. Today the ADP Non-Farm Employment Change report showed a decrease to 135k from the previous value of 228k which was expected to be at 131k. Besides, the Final Services PMI report showed a slight increase to 55.3 which was expected to be unchanged at 55.1. Furthermore, the ISM Non-Manufacturing PMI report was published with an increase to 59.8 from the previous figure of 55.3 which was expected to be at 55.5 and the Crude Oil Inventories report showed greater deficit to -6.0M from the previous figure of -1.8M which was expected to show less deficit at -0.5M. On the CAD side, there were no economic events or reports published but tomorrow the Trade Balance report is to be published which is expected to show less deficit to -2.6B from the previous figure of -3.0B. On Friday Canada will release the Employment Change report which is expected to show a decrease to 13.4k from the previous figure of 22.2k and the Unemployment report is expected to be unchanged at 6.2%. Though USD Non-Farm Employment Change, Average Hourly Earnings and Unemployment Rate reports are also going to be published on Friday with CAD high impact reports which is expected to create greater volatility in the market, thus providing directional bias for the upcoming move in the future.
Now let us look at the technical view. The price is currently residing above the support level of 1.2420 and expected to push higher towards 1.2660 resistance level in the coming days. As of the upcoming high impact economic reports, the pair is currently quite corrective and less liquid and after the weekly close it is expected that the price will disclose the upcoming directional bias of the market.
The material has been provided by InstaForex Company – www.instaforex.com