The CAD market is going to clearly focus on the February labour market data, which is due for publication at the same time in Canada as in the US. Economists at Commerzbank analyze how these reports could impact the Loonie.

US data is likely to be more decisive for USD/CAD

“The Loonie is only likely to receive moderate support from a renewed strong Canadian labour market report if the US data is equally strong, whereas it might benefit more against EUR.”

“Rather than going through all the possible options let me just state in conclusion that the Loonie might depreciate further against USD in case of a combination of stronger than expected US data and surprisingly weak labour market data from Canada.”

See:

• Canadian Jobs Preview: Forecasts from four major banks, a trend reversal would not be surprising

• NFP Preview: Forecasts from 10 major banks, many new jobs created