The Canadian dollar has edged higher this week thanks to stronger oil prices, but remains range-bound ahead of this week's Labour Force Survey, Corpay said in a note Thursday.
The report, due Friday, is expected to show a slowdown in job creation and a stabilization in the unemployment rate in June, following an unexpectedly strong performance in the previous month, Karl Schamotta, Corpay's chief market strategist, wrote in the note.
Near-term headwinds remain in Canada, with weak business investment, soft consumer confidence and below-trend growth weighing on the loonie, added Corpay. However, stronger trade prospects, higher infrastructure spending, easing regulatory constraints and a stronger competitiveness focus could gradually lift sentiment.
All that "could put the currency on an ascendant path sooner than its critics currently assume," wrote Schamotta.