Traders are braced for the volatile market in the New York session.
The US and Canada reported on employment trends.
The US nonfarm payrolls are viewed as a catalyst for market sentiment on the US dollar.
Judging by the dynamic of the US dollar, investors are pleased about the state of affairs in
the US economy.
Market optimism rests on upbeat quarterly reports of US companies and macroeconomic
data alongside China’s plans to trim tariffs on the US imports.
Market participants predicted robust employment in the US public and private sectors.
In this context, the US dollar advanced across the board.
The dollar/yen pair approached the level of 110, having gained 1.5% this week.
This has been the strongest weekly growth since July 2018.
Nevertheless, the currency pair halted its rally in the early New York trade.
Financial markets are on edge as the death toll continues to soar in China.
This accounts for fragile risk sentiment at least in the nearest days.
The US dollar index touched the level of 98.6 today.
Traders pushed the greenback upwards ahead of the US nonfarm payrolls being confident
in upbeat data.
The forecasts came true.
The US economy added 225,000 new jobs in January, much more than the forecast for the increase
On the flip side, the unemployment rate inched up to 3.6% in January from 3.5% in December
which came as an unpleasant surprise.
This week, the Canadian dollar has been trading at near two-month lows against the US dollar.
Traders were cautious awaiting employment data from Canada to revise sentiment.
Meanwhile, greenback bulls managed to push the USD/CAD pair above the level of 1.33 before
the publication of Canada’s report on the labor market.
The unemployment rate came in at 5.5% instead of the forecast for 5.6%.
Traders are also alert to the IVEY PMI.
Technical analysis indicates a reversal of the USD/CAD pair.
A breakout of the key support of 1.3265 and the short-term support at 1.3245 could signal