- The US dollar’s rally stalls below 1.3945 as investors wait for US employment data.
- Non-farm employment is expected to decline significantly, but the unemployment rate remains steady at 4.1%.
- Oil prices are rising in response to speculation that Tehran is preparing to retaliate against Israel.
On Friday, the dollar recorded marginal losses against its Canadian counterpart. The cautious market mood ahead of the most essential US wage report and higher oil prices stopped the growth of this pair.
Investors are cautious about making gigantic bets in U.S. dollars ahead of a particularly essential U.S. nonfarm payrolls report ahead of the Federal Reserve meeting in less than a week.
The US private sector is expected to create 113,000 jobs in October. jobs, compared to 254 thousand in September. It is worth remembering that the impact of hurricanes and recent strikes may have distorted this month’s data, and the unemployment rate will also be apparent in the event of a significant deviation from forecasts.
On the other hand, oil prices are rising following news reports that Iran is considering retaliating against Israel, which provides additional CAD support.
However, the overall picture shows that the US dollar’s uptrend has not changed, although there is a bearish divergence, which suggests the possibility of a downward correction. Resistance is at 1.3945 above the 1400 round level. Immediate support is at 1.3895 and below 1.3840.
