The USD/CAD pair rose after first dropping during the Thursday session. The pair is currently stuck in a relatively well defined range, and as a result has been the domain of short term traders lately.
The session on Thursday saw the markets express concerns about the jobs numbers out of America. The fact that this pair chopped around so much makes sense as it is especially sensitive to the Non-Farm Payroll numbers. This is simply due to the fact that the US buys 85% of Canada’s exports. The jobs number will be crucial for the next move to be made in this pair. If the number is good, expect a drop but know that the 0.98 level has to be overcome in order to see a real move lower. If the number is weak, this pair will run higher, possibly as high as parity.
Written by FX Empire