Today's focus will be on the ADP Non-Farm Employment Change. This report will give investors a heads up on what to expect from Friday’s U.S. Non-Farm Payrolls report. If the number is bullish then demand for higher risk will rise, pressuring the U.S. Dollar. This will give the Canadian Dollar a boost. If the report shows weakness then look for the USD/CAD to get stronger.
Another factor that may drive up the Canadian Dollar is demand for higher risk assets that could come about if Spain makes a formal request to the European Central Bank for financial aid. Traders are waiting for this to take place and it could trigger a sharp rise in global equity markets, gold and crude oil. Since the prices of these two commodities have a major influence on the Canadian economy.
Another factor that may drive up the Canadian Dollar is demand for higher risk assets that could come about if Spain makes a formal request to the European Central Bank for financial aid. Traders are waiting for this to take place and it could trigger a sharp rise in global equity markets, gold and crude oil. Since the prices of these two commodities have a major influence on the Canadian economy.
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