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USD/CAD Forecast Fundamental Analysis | US Dollar / Canadian Dollar

Friday March 12, 2021

The Canadian Employment Report for February is predicted to show the addition of 75.0K jobs and an Unemployment Rate of 9.2%.

Forex traders can compare this to the Canadian Employment Report for January, which showed the loss of 212.8K jobs and an Unemployment Rate of 9.4%. The Participation Rate for February is predicted at 64.9%. Forex traders can compare this to the Participation Rate for January, reported at 64.7%. The Canadian Capacity Utilization Rate for the fourth quarter is predicted at 78.0%. Forex traders can compare this to the Canadian Capacity Utilization Rate for the third quarter, reported at 76.5%. Canadian Wholesale Trade Sales for January are predicted to increase by 5.0% monthly. Forex traders can compare this to Canadian Wholesale Trade Sales for December, which decreased by 1.3% monthly.

Preliminary US Michigan Consumer Sentiment for March is predicted at 78.5. Forex traders can compare this to US Michigan Consumer Confidence for February, reported at 76.5. Preliminary Current Conditions for March are expected at 88.3, and Preliminary Expectations are predicted at 74.0. Forex traders can compare this to Current Conditions for February, reported at 86.2, and to Expectations, reported at 70.7.

The forecast for the USD/CAD remains bearish, with a weak US labor market and debt weighing down the US Dollar. Supporting more downside in this currency pair are the descending Tenkan-sen and Kijun-sen, while the Ichimoku Kinko Hyo Cloud is also moving lower. While the CCI recorded a higher low in oversold territory, from where a quick bounce is expected, more downside potential is ahead.

USD/CAD Forecast Fundamental Analysis | US Dollar / Canadian Dollar