Monday CAD decoupling oil prices proved to be a mirage. With both West Texas and Brent down more than 4 percent the Loonie lost ground against the USD in the trading session on Tuesday. Oil prices got a temporary reprieve after it was rumored (and where fanned by official comments) about a potential production agreement between the Organization of Petroleum Exporting Countries (OPEC) and non-OPEC members such Russia. Iran claims nothing that does not bode well for the future of the agreement if the fourth largest nation in oil reserves are in the loop know.
The oil drop led the USD higher against the currencies of raw materials and the CAD was no exception. There were no economic indicators today which could help the CAD against the movement of negative price of oil and gas. The fall in the energy sector made investors wary of taking on more risk and they headed toward safer assets, like the euro, the yen and gold.
USD / CAD advanced 0.34 percent in the past 24 hours. The pair has traded with volatility of 1.25 per cent between the top and bottom every day since the turbulence on the oil market. The USD / CAD is trading near session highs at 1.4050 pending a first US job tomorrow release related to the publication of the ADP numbers of private employment. Private employers added 275,000 the previous month new jobs that are correlated with such a massive gain of 292,000 on non-US agricultural jobs (NFP).
With the numbers of private employment in the US will release its ISM non-manufacturing PMI and the US Energy Information Administration will release the weekly crude oil inventories which have a direct impact on the price of the cloth black OPEC and non-OPEC have so far failed to reach agreement on who to cut production to raise prices.
Canadian data share the spotlight Friday, but will not be the center of attention that the market will be more focused on the NFP report. CAD traders will keep an eye on the price of crude and the way the employment situation in the US and Canada has changed since the positive figures last month
Events USD / CAD to watch this week :.
Wednesday, February 3
8:15 USD ADP Non-Farm Employment Change
10:00 USD ISM non-manufacturing PMI
10:30 am USD oil stocks gross
Thursday, February 4
8:30 USD unemployment claims
Friday, February 5
8:30 CAD employment Change
8:30 CAD trade balance
8:30 CAD unemployment RateUSD
USD 8:30 nonfarm employment change
08:30 USD trade balance
8:30 USD unemployment rate
* All EST
hours for a full list of events planned for the visit of the foreign exchange market the economic calendar MarketPulse
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