Dual US and CA employment reports largely delivered on consensus expectations – leaving a broadly neutral impact on the USD. But economists at TD Securities expect USD/CAD to edge higher towards 1.40.

Looking to 1.40 as the next major target

“The takeaway is that while both reports show signs of some moderation in the labour market, we think the impact on the USD is broadly neutral at this time.”

“USD/CAD is likely to make another lurch higher, but the market may need to wait for US and maybe CA CPI before securing a new YTD high.”

“We see strong support to buy into USDCAD dips around 1.3600/40. A push above 1.38 will re-open 1.40 risk. We think we will need a bit more time to get there but nonetheless, the destination remains up.”