USD slips ahead of employment data

Both the GBP/USD and EUR/USD rates are a tad higher this morning ahead of the US employment data. Yesterday’s weekly jobless claims numbers showed a minor downturn in the number of unemployment claims. The recent job openings report showed a rise in the number of opportunities for unemployed Americans. So there is every chance the September payroll data will show a strong labour market in the US. Ostensibly, that would suggest higher US interest rates for longer and yet the markets have allowed the US dollar to weaken overnight. GBP/USD is up to $1.22 and the EUR/USD rate is up to where it was at the start of the week, $1.0550. These rates will undoubtedly be volatile around midday but exactly where they will be by the end of the day all hangs on the nonfarm payrolls report.

CAD steady as traders await employment data

Although US employment data will dominate the headlines today, we will also see Canada’s unemployment numbers at 1:30 UK time. The general market consensus is that Canada’s unemployment rate will tick up to 5.6% from 5.5% in August. That may well be a warning sign for the Bank of Canada as they contemplate where to take Canada’s base rate. The GBP/CAD rate is up on the week. It started at CAD 1.6550 on Monday but is up to CAD 1.6715 this morning ahead of that data. If the employment numbers are as the market has forecast, there is a good chance this pair will hang around the CAD 1.67 level. However, if there is anything untoward in that data, the loonie will have an exciting afternoon.