Canadian jobs data for the month of May will be released today. Economists at ING expect the USD/CAD pair to dip below as a strong headline figure is set to endorse a fast-paced tightening cycle in Canada.

Jobs data to support good momentum

“We expect a stronger headline figure than the 15K increase in April, fuelled by a rebound in full-time employment, as well as some further acceleration in wage growth.”

“The notion of a tight market has been central in allowing the Bank of Canada to push forward with 50bp rate increases, and we think today’s release will continue to endorse a fast-paced tightening cycle.”

“With rate expectations supported and crude prices enjoying good momentum, we think the Canadian dollar can stay on an appreciating path.”

“We think a break below 1.2500 is likely in the coming days, and we expect sub-1.2500 levels to be the norm for the second half of the year.”

See – Canadian Employment Preview: Forecast from four major banks, additional jobs gain in May