USD/CAD Update – 06/10/2017 (10:50am) – by Arjun Lakhanpal
October 6, 2017USD/CAD Update – 06/10/2017 (10:50am): USDCAD could be interesting today… USDCAD surged 60 points yesterday on weak Canada trade data (Intl merchandise balance -3.41bn vs. -2.60bn c/f) before continuing to kick on during the New York session to make new highs of 1.2591, with a broader stronger USD driven by US FI sell off and NAFTA headlines: *U.S. `SOMEWHAT DISAPPOINTED’ WITH NAFTA TALKS SO FAR: PERDUE. In focus today will be US and Canada jobs reports: barring any major surprises in payroll numbers (which will be somewhat distorted by hurricane effects) many now expect wage growth to drive CAD price action, with Barclays research anticipating a slight uptick from Aug figure of 1.8% YoY given the continued strength of the economy. Support comes in at 1.2540 (prev high) ahead of trendline at 1.2450, resistance at 1.2660 ahead of 1.2780.
