The USD/CAD price analysis suggests further gains as the fundamental and technical pictures indicate an uptrend.
The USD/CAD soared to fresh daily highs near 1.2565 on Monday. The recent upsurge stemmed from the rise in coronavirus infection in Japan and downbeat Chinese important data. The weekly forecast for the USD/CAD pair is bullish. The contrast in the labor results of Canada and the United States drove the rise of the USD/CAD pair, achieving a weekly close above the 1.2580.
On the part of the Fed, signs of a possible reduction of asset purchase program are beginning to be seen after some important figures made statements related to this. Like the case of Fed Vice Chairman Richard Clarida, who commented that there could certainly be announcements at the end of the year about a gradual reduction.
On the Canadian side, unemployment statistics improved but at a slower than the estimated rate. The unemployment rate decreased 0.3% to 7.5% compared to 7.8% in June. However, the number of jobs created during the last month was 94,000, far from the estimate of analysts who predicted 177,500 new jobs for July.