Short-term Canadian Dollar moves will likely follow the trajectory of crude oil prices and broader financial market risk sentiment, while a late-week Canadian employment report likewise promises substantial volatility out of CAD pairs. Consensus forecasts call for the strongest net job gain since January, leaving substantial room for disappointment. Yet it is interesting to note that a Bloomberg survey shows the range of economist predictions at a substantial 8.2k to 50.0k net jobs. Clearly someone will have over and underestimated job creation in the Canadian economy, and markets will likely react strongly to any and all substantial surprises out of said news release.
Otherwise Canadian Dollar traders should likely keep an eye on any and all developments out of the US economy. A substantial week of US economic event risk could force sympathetic moves out of the closely-linked Canadian currency. - DR
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