- February 6, 2020
- Posted by: John Curran
- Category: Market News
Good morning,
China has cut the tariff rate on US imports by 50% on over 75B of goods to boost confidence and spur trade amid virus concerns. Oil rebounded to over 50 a barrel for the second day straight today after hitting a two month low on Tuesday of 49.23. Support in the oil price is also spurred by recent OPEC intervention in curtailing oil supply to maintain a target price of 50 a barrel. Overall USDCAD remains in tight consolidation of two day range with a slight pop in the USD against CAD to a 50 day high ahead of tomorrow’s all important jobs figures on both sides of the border. Friday’s non-farm payrolls data for January is projecting a bump of 160K US jobs from the previous report of 145K. US average hourly earnings are expected to tick up to 3% from previous 2.9% along with the US unemployment rate to remain unchanged overall at 3.5%. Canada’s unemployment rate for last month is expected to remain unchanged at 5.6% with a modest addition of 15K new jobs from last month’s reported 27.3K. USDCAD key support of 200 day moving average remains unchanged at 1.3225 – the next resistance level to note is now 1.3328/21 November / December double top.