USD/CAD - Market Tries on Jobs Numbers

The Canadian dollar has been trading sideways for the last 48 hours in anticipation of the release of Employment Change and Unemployment Rate, to see if the Bank of Canada's hawkish tone is still intact. Net Change showed a gain of 10,900, and the Unemployment Rate decreased to 6.3% from 6.5% for July. Canadian Trade Balance figures forecast at $-1.25 billion, but came in well below forecasts and printed at $-3.6 billion. Investors will have Ivey Purchasing Managers Index figures to consider at 10 am. WTI Crude Oil continues its slight dip after topping off at $50.43 U.S. per barrel on Monday and inventories showed stockpiles had fewer draws for the week; WTI currently trades at $48.92 U.S.

Today is employment day and the consensus was for an additional 180,000 jobs added for the month of July. Non-Farm Payrolls showed that job creation was better than expectations and posted 209,000, but the biggest takeaway was the Average Hourly Earnings which were higher than estimates of 2.4% and posted a 2.5% year over year The U.S. dollar is trading higher against its G10 counterparts after the release. U.S. Trade Balance figures were also better on previous of $-46.4b and expectations of $44.5b posting at $-43.6b on imports vs. exports. A risk factor to the greenback continues to be the investigation into the Trump Administration's possible collusion with the Russians during the 2016 election. A grand jury has been formed, and Special Counsel Robert Mueller has issued subpoenas.

Experts expect a range today of $1.2575 to $1.2672

There’s been a series of disappointing Germany data recently, but German Factory Orders in June is on the rise after printing at 5.1% y/y and 1.0% m/m, which is better than expected. Retail PMI in July was disappointing for Germany, France, and the euro-zone, but Italy continues to print better than expected PMI results. The euro is currently trading at $1.4921.

Traders expect a range today of $1.4913 to $1.4972

It's a slow day on the fundamental end for the U.K. with only second tier data releasing. New Car Registrations dropped in July to -9.3% from the previous month of -4.8%. The pound sterling is continuing its losing trend from yesterday after Bank of England came out with a dovish tone and cut growth forecasts for 2017 and 2018. The sterling is currently trading at $1.6525.

Market watchers expect a range today of $1.6465 to $1.6556

An upbeat Australia Retail Sales report is helping the Australian dollar cap its losses after the Reserve Bank of Australia trimmed its Gross Domestic Product forecast for 2017. In its policy statement released last night, the central bank warned that a further rise in the Aussie would lower economic growth and inflation. The bank added that the recent appreciation in the currency Down Under has had a modest dampening effect on the economic forecast. The RBA lowered the December 2017 GDP forecast to 2% to 3%.

Oil (WTI): $49.03 U.S. per barrel

Gold: $1,262.84 U.S. per ounce

Silver: $16.54 U.S. per ounce

Copper: $2.8856 U.S. per tonne

Dollar Index: 93.19

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