The US unemployment claims are announced on Thursday at 15:30 MT time.
Elections in Canada: what do they mean for the CAD?
Today, the election in Canada will determine whether the Liberal Party Prime Minister Justin Trudeau or the Conservative Party leader Andrew Scheer will lead the government.
According to analysts, the most likely scenario is a government that does not command an absolute majority. Plus, some of the experts suggest that the minority administration led by the Conservative party would be better for the Canadian dollar than the one led by Trudeau and his team. The reason behind this opinion lies in the Conservative party's promises to remove Trudeau's oil regulations. It will help to boost the CAD, as it is the commodity-linked currency.
At the moment, USD/CAD is trading at the lowest levels since July. If the loonie is supported today, the support for the pair will lie at 1.3083. The next support will be placed at 1.3052. In case of a reversal, you need to pay attention to the 1.3132 level. The next resistance will be placed at 1.3145.
We are now past the middle of January, and this means that the largest US companies will report their earnings for the fourth quarter and many of them will provide the results of the entire 2020.
Poor US data, slow vaccine distribution, rising virus cases worsened the market sentiment and underpinned safe-haven currencies like the USD, and JPY.
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.