USD/CAD continues to trade well within recent ranges on either side of the 1.2650 mark and not far from the pair’s 21-day moving at almost bang on 1.2650. In fairness, though trade has been mundane and for the most part rangebound, the loonie is a moderate underperform in Wednesday’s G10 FX ranking table, with the loonie down 0.1% versus the US dollar. Some market commentators attribute this very modest underperformance to the lack of any hint towards QE tapering by the BoC in Wednesday’s monetary policy statement.
Looking ahead, two stand-out risk events in the final two trading days of the week are worth noting; BoC Deputy Governor Lawrence Schembri will be speaking at 18:30GMT on Thursday, where he will likely give colour on Wednesday’s monetary policy decision. StatsCan will then release the latest Labour Market report for the month of February at 13:30GMT on Friday; markets expect that the Canadian economy added 75K jobs on the month, enough to bring the unemployment rate back down to 9.2% from 9.4% in January.