Canadian dollar outlook dominated by employment data; CAD sees firm trading at start of new week

A look at the spot markets shows the CAD to be trading on the front foot:

The US dollar / Canadian dollar exchange rate to be 0.2 pct in the red at 1.0356.
The pound sterling to Canadian dollar exchange rate is 0.1 pct higher at 1.5787.
The euro to Canadian dollar rate is 0.34 pct lower at 1.3441.

Please Note: The above quotes are taken from the spot markets; your bank will however affix its own discretionary spread to these figures. However, an independent FX provider will guarantee to beat your bank's offer, thus delivering you more currency. Please find out more here.

The Canadian dollar has today been supported by a broadly positive risk environment

"After a slew of global data, including better than expected PMI releases in China and across Europe some of the pessimism surrounding Friday’s weak close has evaporated. Equities are pointing to a higher US open, yields are higher; while the USD is broadly weaker," notes Camilla Sutton at Scotiabank.

Sutton goes on to say:

"This week’s data includes international merchandise trade and Ivey PMI but the highlight comes with the Friday employment release, consensus is looking for a gain of 15k jobs. Governor Poloz has now taken up his new position; however there is no speeches scheduled for him until June 19th."

Concerning the technical outlook for the Canadian dollar, Shaun Osborne at TD Securities says:

"USD/CAD is consolidating but modestly softer at the start of the week.  Key support remains 1.0300/05 (1.0301 is now the neckline of a small, but nicely-formed potential H&S top on the short-term chart). We remain bullish but the loss of 1.03 near-term would be  a short-term blow at least to the trend.   Regaining a 1.04 handle and making new highs would be supportive."