USD/CAD Exchange Rate Forecast for October 3
Throughout the second half of September and most of this week the USD was gaining in strength against the CAD and reached a high of 1.1214 on Wednesday. However, it then dropped sharply down to 1.1135 before it began creeping up again.
The USD dropped as investors awaited the European Central Bank’s policy statement. However, it turned around after the release of upbeat US jobless claims data and the market began to anticipate Friday’s report on US nonfarm payrolls. The US Department of Labour said that the number of people filing for initial jobless benefits in the week ending September 27 was down 8,000 from the previous week.
It is expected that Friday’s data will show that the US economy added more than 200,000 jobs for a sixth successive month in August. As a result the USD is very likely to rise so a Call option will probably be profitable.