Ella 
On Monday in Asia, USD/CAD fell for the fourth consecutive day, hovering around 1.3650. USD/CAD is under downward pressure due to dismal U.S. employment data and expectations that the Federal Reserve may stop tightening monetary policy.
In Canada, weak labor data may weigh on the Canadian dollar. Employment changes released by Statistics Canada on Friday showed net employment fell to 17,500 in October from 63,800 in September, below expectations of 22,500. The unemployment rate rose to 5.7% from the previous value of 5.5%.
Bank of Canada (BOC) Governor Tim Macklem said in a statement last week that there are signs that the neutral rate is more likely to move higher than lower.
At press time, the U.S. dollar index was hovering around 105.10, having fallen sharply by more than 1.0% in the previous session. The U.S. dollar’s weakness can be attributed to subdued U.S. Treasury yields, amid market volatility following disappointing U.S. labor data.
U.S. non-farm payrolls (NFP) data could boost investors as they have been expecting slower economic data to convince the Federal Reserve that raising interest rates is not necessary. The report showed that employment was 150,000, lower than the 180,000 expected, and a sharp decline in non-farm payrolls in October compared with 297,000 in September.
Additionally, the U.S. unemployment rate rose to 3.9%, while markets expected the unemployment rate to hold steady at 3.8% in October. The ISM services purchasing managers index fell to 51.8 from the previous value of 53.6. On Thursday, the U.S. Department of Labor announced the number of initial jobless claims filed in the United States last week for the week ending October 27, showing that the indicator increased from 212,000 to 217,000.
Investors are likely to keep an eye on Canada’s Ivey Purchasing Managers’ Index, due for release on Monday. In addition, investors will also pay attention to the Michigan Consumer Confidence Index in the second half of this week.
