Canadian Jobs in the spotlight too this afternoon- USD/CAD drops below 1.35 today

The US is not the only one to report their August monthly jobs report today. The same data will emerge from Canada at exactly the same time- 12.30pm GMT. As mentioned many times before that simultaneous release can make it very tricky, when looking to trade the USD/CAD over the numbers, especially if there is divergence between the data. The markets are forecasting an increase in Canadian payrolls last month around 25k, compared to a fall in July of 2.8k. The underlying rate of unemployment is expected to tick up to 6.5% though and anything higher than that could endorse an outlook for another rate cut from the BOC. As we know the BOC cut their OCR to 4.25% this week. The USD/CAD fell back after that rate cut, which as noted, was clearly priced in at that stage. The USD/CAD closed in the US last night at 1.3503 and it has fallen to a fresh interim low earlier today, at 1.3486. Looking at the daily chart on this one it looks like it could drop back further, but it might need some decent Canadian jobs data to facilitate such a move, so we shall see later today, if that is forthcoming. The USD/CAD is currently trading at 1.3495