After a wild trading week which featured plenty of market moving economic reports as well as geopolitical developments, forex traders will get a light Friday afternoon session. The PPI report out of the US will be more closely watched than usual as the US Fed is expected to lower interest rates again in September. The lack of inflation as well as inflationary pressures could further boost sentiment for an interest rate cut. How will the US Dollar react? The USDCAD has entered a corrective phase, an it extend further to the downside? Subscribe to the PaxForex Daily Fundamental Analysis and join our fast growing community of profitable forex traders!

Canada will release its key employment report and economists predict net job gains for July after June unexpected job losses. The Canadian labor market is seeing wage based inflation which may prevent the Bank of Canada to cut interest rates, giving a boost to the Canadian Dollar. A strong employment report is expected to push price action further to the downside. Will today’s data result in a new wave of sell orders for the USDCAD? Today’s fundamental analysis will take a look at the upside and downside potential of this currency pair.