CAD wavers after upbeat jobs numbers from Canada
Global stocks were mixed today as traders continued to worry about the rising coronavirus cases, tensions between the US and China, and the new, unknown, virus spreading in Kazakhstan. In the US, Australia, Hong Kong, and South Africa, the number of coronavirus cases has been rising. That has risked the global growth that started in May this year. Meanwhile, China reacted angrily at the US for imposing new sanctions on a senior government official because of the situation at Xinjian Province. At the same time, investors are worried about a new pneumonia-like disease that has killed more than 1,700 people in Kazakhstan. The Chinese ambassador to the country warned that the disease was worse than the coronavirus.
The euro rose slightly as traders reacted to upbeat economic data from Europe. Data from Italy showed that the Italian industrial production rose by 42% MoM in May after falling by more than 20% in the previous month. The production improved from the previous decline of 43.4% to a decline of 20.3% on an annualised basis. These numbers, together with the recently-released manufacturing and services PMI data, show that the European economy is making progress. In the coming week, attention will shift to the European Central Bank, which will release its interest rate decision.
The Canadian dollar was little changed against the US dollar after Statistics Canada released upbeat employment numbers. The data showed that the economy added more than 952K jobs in June, a month after it added 289k jobs. At the same time, the unemployment rate dropped from the previous 13.7% to 12.3%. These numbers came a day after the National Mortgage Association released better than expected housing starts data. In the United States, numbers from the Bureau of Labour Statistics (BLS) showed that producer prices declined to 0.8% in July while the core PPI rose to 0.1%.
The EUR/USD pair pared some earlier losses and is currently trading at 1.1293, which is slightly higher than the intraday low of 1.1255. On the four-hour chart, the price is slightly above the 23.6% Fibonacci retracement level. It is also slightly above the 50-day and 100-day exponential moving averages and the ascending white trend line. Therefore, the pair is likely to continue going upwards as bulls target moves above 1.1300.
The XBR/USD pair declined to an intraday low of 41.45. If this trend continues, it will mean that the price will have dropped for the week. The price is below the 50-day and 100-day simple moving averages while the RSI has been falling. It has also moved below the important ascending trend line that is shown in white. Therefore, while a lot can change during the weekend, the pair is likely to continue dropping as bears target the 23.6% retracement at 38.28.
The USD/CAD pair is trading at 1.3605, which is slightly above the 50-day and 100-day exponential moving averages. The price is close to the highest point on Wednesday this week. On the four-hour chart, the moving average of oscillator has been rising while the mainline of the MACD has moved above the neutral line. The pair is likely to continue ranging ahead of the BOC rate decision next week.