Canada lost 54,000 jobs in October. This is bitter disappointment and it erases most of last month’s gains. Also the unemployment rate disappointed with a jump to 7.3%, also erasing the previous advance. Early expectations stood on a gain of 16.3K jobs and a rise of the unemployment rate to 7.2%.
USD/CAD is now jumping to 1.0174, approaching resistance at 1.02. It was leaning lower towards the publication, sliding from 1.0140 to 1.0110 just before the release.
Last month, Canada enjoyed excellent numbers that clearly boosted the loonie.
As Canada is very dependent on the US, this could be a negative sign for the Non-Farm Payrolls that await us at 12:30 GMT. On the other hand there are many positive signs leading to the publication. See the Non-Farm Payrolls preview for more.
The US dollar is also aided by very disappointing data from Europe: German factory orders plunged by 4.3%, after falling 1.4% last month. A rise was expected. The global slowdown is helping the greenback.
Above 1.02, resistance is found at 1.0263, followed by 1.0360. Support is at 1.01, followed by USD/CAD parity. For more on the pair, see the Canadian dollar forecast.
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