FxWirePro: USD/CAD positions for another climb, eyes 1.3900

• USD/CAD firmed on Friday as Canadian dollar weakened ahead of potential interest-rate cut by the Bank of Canada next week.

• Market expect the Bank of Canada to cut its   rate by 25 basis points on September 17, citing a weakening labour market and slowing economic activity, with at least one more reduction anticipated next quarter.

•Official data last week showed Canada’s economy lost 65,500 jobs in August, driving the unemployment rate to a nine-year high outside pandemic periods.

• Canada’s central bank is under increasing pressure to resume easing after keeping rates unchanged since March, following a cumulative 225-basis-point cut—one of the most aggressive among G10 peers.

• At GMT 16:28, the dollar was up  0.19% to 1.3858 against the Canadian dollar.

• Immediate resistance is located at 1.3904(50%fib), any close above will push the pair towards 1.3933(Higher BB).

• Support is seen at 1.3824(SMA 20) and break below could take the pair towards 1.3806(38.2%fib).

Recommendation: Good to buy around 1.3830, with stop loss of 1.3750 and target price of 1.3900