USD/CAD fell after a strong jobs report but remains a dozen pips higher on the day in what could be the eighth straight day of gains.
USDCAD daily
The pair was trading at a session high of 1.3780 just before the data then fell as low as 1.3726 afterwards but has since rebounded to 1.3754. The market is struggling to gauge whether the Bank of Canada will cut by 25 or 50 basis points on October 23. Before the data, the probabilities were slightly tilted to 50 bps but those odds are now down to 36%.
Even with that, USD/CAD has been on a rough streak. That’s in large part to broader US dollar demand but there is also some element of trepidation about the strength of Chinese stimulus. That was also reflected in Shanghai shares today, which fell 2.55% ahead of a weekend briefing that may reveal more fiscal stimulus.
Even if the pair rises again today, it wouldn’t match the nine-day rally in July as economic worries mounted.