USD/CAD: Short-term upside risks, but bearish over the medium-term – ING

Jobs figures will be released in Canada today. However, this report is set to be overshadowed by the US Nonfarm Payrolls, according to economists at ING report who analyze the USD/CAD pair.

Less relevant payrolls

“Today’s jobs data out of Canada may well matter less than the US NFP for CAD, given the Loonie’s elevated exposure to global risk appetite.”

“We continue to see short-term upside risks for USD/CAD, but remain bearish over the medium term, largely on the back of a projected USD decline, rather than CAD outperformance compared to other pro-cyclical currencies.”

See: 

• Canadian Jobs Preview: Forecasts from four major banks, a trend reversal would not be surprising

• NFP Preview: Forecasts from 10 major banks, many new jobs created