The Canadian Dollar (CAD) has stepped broadly higher against the majority of its major currency peers on Thursday, though the CAD is battling a recovering US Dollar (USD) as the two currencies are on pace to settle the day as the top performers. US Initial Jobless Claims came in lower than expected, driving investors back into the Greenback as the US economy continues to outperform. Canada sees a clear economic docket on Thursday as investors gear up for Friday’s Canadian labor and wages figures. Markets are forecasting a slight uptick in the Canadian January Unemployment Rate, as well as a smaller-than-usual Net Change in Employment for January, though the number is still projected to be positive.
The Canadian Dollar is broadly higher on Thursday, gaining nine-tenths of a percent against the Japanese Yen (JPY) and over half a percent against the Australian Dollar (AUD). On the low end, the CAD is mostly flat against the US Dollar after recovering from an early dip, and it is up a scant tenth of a percent against the Euro (EUR). The USD/CAD saw a sharp turnaround just below 1.3500 on Thursday as investors aren’t ready to push the pair back over the key price handle. The pair is currently finding technical support from the 200-hour Simple Moving Average (SMA) near 1.3450, and an extended breakdown puts the USD/CAD on the road to re-challenging early February’s swing lows into 1.3370. Daily candles remain caught in the midrange of a consolidation zone between the 50-day and 200-day SMAs at 1.3423 and 1.3476, respectively, but the USD/CAD is still up over 2% from December’s bottom bids of 1.3177.