A combination of monetary policy and economic data will headline the Wednesday session, with the Bank of Canada (BOC) scheduled to deliver a rate verdict. What impact does this event have on the USDCAD pair? Find out on the 7 March USDCAD Fundamental Drivers Analysis.
7 March, OctaFX – The North American session begins with high-profile jobs report courtesy of the ADP Research Institute. Private sector payrolls are projected to rise 195,000 in February, compared with 234,000 the month before.
ADP numbers are considered to be a fairly accurate precursor to the upcoming nonfarm payrolls data, which are due 48 hours later. On Friday, the Department of Labor is expected to show a gain of 200,000 nonfarm jobs last month. Unemployment is also expected to fall to 4% from 4.1%.
Just 15 minutes after the ADP report, the Department of Commerce will report on Washington’s trade balance for the month of January. The deficit is forecast to rise to $55.1 billion from $53.1 billion in December.
North of the border, the Bank of Canada will deliver its latest verdict on interest rates at 15:00 GMT. BOC officials are widely expected to stand pat on monetary policy for the time being. Canada’s benchmark interest rate currently sits at 1.25%.
7 March USDCAD Fundamental Drivers Analysis
The USD/CAD came within a few pips of the all-important 1.3000 handle on Tuesday. Prices would later correct lower, eventually settling around 1.2924. The loonie on Wednesday will likely take its direction from the BOC, which could provide important clues about the path of monetary policy in its official statement.
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