USD/CAD edges higher slightly above 1.4400 with US-Canada employment data in focus. The uncertainty over Trump’s policies continues to keep the USD on the frontfoot. The labor growth in Canada is estimated to have slowed significantly in December. The USD/CAD pair extends its winning spree for the fourth trading session on Friday ahead of the official employment of the United States and Canada for December. The Loonie pair ticks higher slightly above 1.
Market participants expect the pace of hiring in December to be half of what had been recorded for November. The Canadian economy witnessed a fresh addition of 25K workers in December against 50.5K in November. The Unemployment Rate is seen accelerating to 6.9% from 6.8%. Signs of a slowdown in the labor demand would boost expectations that the Bank of Canada will continue easing the monetary policy at a larger-than-usual pace of 50 basis points .