Excellent start to the month for the greenback!
The U.S. dollar is starting off August strong with the excellent employment data released on Friday that could contribute to a continued bullish trend. In July, the United States created 255,000 jobs versus the 180,000 expected, a stark contrast to Canada, which lost 71,000 full-time jobs during the same month.
This loonie was impacted by this divergence, losing more than 1.2% against the greenback on Friday. The probability of at least one rate hike in the U.S. by the end of 2016 is now at 47%. The situation is different in Canada with investors estimating the likelihood of a rate cut in 2016 at 24%. According to our economists, the USD/CAD pair should remain within the 1.3000 - 1.4000 range over the coming year.
No major economic indicators are on the agenda today. The Canadian dollar is stable against the greenback and the euro. Crude oil prices are rising while the futures market is pointing to a positive opening on North American markets! Have a great day.
