USD/CAD fell after a powerful jobs report however stays a dozen pips larger on the day in what may very well be the eighth straight day of beneficial properties.
The pair was buying and selling at a session excessive of 1.3780 simply earlier than the information then fell as little as 1.3726 afterwards however has since rebounded to 1.3754. The market is struggling to gauge whether or not the Financial institution of Canada will minimize by 25 or 50 foundation factors on October 23. Earlier than the information, the possibilities have been barely tilted to 50 bps however these odds are actually all the way down to 36%.
Even with that, USD/CAD has been on a tough streak. That is largely to broader US greenback demand however there’s additionally some component of trepidation in regards to the power of Chinese language stimulus. That was additionally mirrored in Shanghai shares right this moment, which fell 2.55% forward of a weekend briefing which will reveal extra fiscal stimulus.
Even when the pair rises once more right this moment, it would not match the nine-day rally in July as financial worries mounted.