- US and Canada Jobs data on tap
- Oil prices are sticky into the weekend
- USD steady after quiet overnight session
USDCAD open: 1.4018, overnight range 1.4010-1.4029. close 1.4016, WTI 77.17, Gold 4,317.77
The Canadian dollar is trading quietly and waiting for today’s US and Canada jobs numbers. Both are unlikely to have much impact, because central bankers far more concerned about inflation than labour market conditions.
For the record, Canada's economy is expected to have created 15,000 jobs in July after adding 18,200 positions in June. The unemployment rate is forecast to hold steady at 6.5%.
The July nonfarm payrolls report is forecast to show the economy added 80,000 jobs after June's 57,000 increase. The data is unlikely to have a major impact on Fed thinking as policymakers remain far more focused on inflation than labour market conditions.
WTI oil traded in a 76.85-78.75 range overnight and is hovering near the lower end of that band in early New York dealing. Traders remain cautiously optimistic that the US-Iran conflict will be resolved, but shipping companies are taking no chances. Just 33 vessels transited the Strait of Hormuz this week, down from 50 the previous week.
In Asia, Japan's Topix rose 0.47%, Hong Kong's Hang Seng rose 0.54%, while Australia's ASX 200 finished little changed.
As of 7:00 am, European equity markets are trading higher. Germany's DAX is up 0.84%, France's CAC-40 has added 0.43%, and the UK's FTSE 100 has climbed 0.68%. S&P 500 futures are ahead 0.16%, the 10-year Treasury yield is 4.66%, the DXY is 99.91, and gold is trading at $4,319.81.
EURUSD drifted within a 1.1517-1.1532 range as markets continued to digest hawkish remarks from St. Louis Fed President Alberto Musalem. He argued that interest rates should have been increased at the previous FOMC meeting because inflation is likely to remain above the Fed's 2.0% target through 2027. Germany's trade surplus narrowed to €15.4 billion from €19.4 billion.
GBPUSD was confined to a 1.3436-1.3460 range as traders stayed on the sidelines ahead of today's US employment report. Lingering uncertainty surrounding US-Iran relations and the absence of market-moving UK data discouraged fresh positioning.
USDJPY extended its recovery in a 158.22-158.27 range, retracing part of last week's decline following coordinated Fed and Bank of Japan intervention.
AUDUSD hovered in a 0.7023-0.7043 range during a subdued overnight session as traders looked ahead to today's US payrolls report. Focus is also beginning to shift toward Tuesday's Reserve Bank of Australia meeting, where policymakers are widely expected to leave interest rates unchanged.
