Canada published their employment figures for February last Friday. Canada added 20K jobs last month, above 17.5K, forecasted. The data published was below January figure which was 43K. The release added to an already bullish trend in CAD against other major currencies. Looking at the hourly chart, right after the figure was published, investors responded by buying CAD and selling the USD. The market moved by almost 80pips. USD/CAD pair is down for the second week as the CAD is gathering strength supported by good economic data and the price of commodities. Currently USD/CAD is trading at 1.0183, after trading at 1.0165 earlier today. From this point on, commodities such as Oil and Gold will continue to influence CAD currency against other major currencies. Traders taking positions on CAD, it is advised, to follow commodities prices. A continual up trend will support the strength of the CAD. This week main publications include Manufacturing Sales during Tuesday at 12:30GMT, Wholesale Sales during Wednesday at 12:30GMT, Core CPI, and Core Retail Sales during Friday, at 11:00 GMT and 12:30GMT respectively. Significant amount of economic data will be published in the coming week. Publications should provide an indication for the health of the Canadian economy. Data might turn beyond analysts forecast, in continue to last week unemployment rate. Emphasis should be on Core CPI and Retail Sales, High figures would increase pressure on the Bank of Canada to raise interest rates. Such a move, although, not expected before the end of the second quarter, could add to speculations and boost the Canadian dollar even higher against the USD. Exchange rate for the USD/CAD pair of 1.000 does not seem too far away. Speculations on interest hike might be enough to make it a reality in a short period. I would advise traders to continue monitor our Forexyard blog, daily reports and technical analysis this week for new insights about the Canadian Dollar.

Source