Ella 
USD/CAD is firmer in Asia on Thursday. The pair rebounded as U.S. dollar demand rebounded and oil prices fell. The exchange rate is currently trading at 1.3605, down 0.09% on the day.
On Wednesday, the Bank of Canada kept its key overnight interest rate unchanged. No change at 0%, opening the door to further interest rate increases. The central bank cited slowing economic growth and declining price pressures on consumer spending, testifying that raising interest rates is helping to reduce inflation.
Money markets expect the central bank to cut interest rates as soon as March and by 25 basis points in April. However, Bank of Canada Governor Tiff Macklem said the central bank is not even considering cutting interest rates because inflation is above target.
The interest rate hike cycle is complete, and the Federal Reserve will maintain interest rates until at least July, later than previously expected. Data released on Wednesday showed that ADP private sector employment increased by 103,000 in November, compared with the previous value of 106,000 and the expected 130,000.
Market participants will be eagerly watching for Canadian building permits in October. In addition, the United States will also announce the number of initial jobless claims last week, which is expected to increase by 222,000. The focus is on the U.S. non-agricultural data released on Friday. The non-agricultural population is expected to increase by 185,000 in November, and the unemployment rate remains stable at 3.9%. Data will guide USD/CAD.
