- Loonie recovers strength after lower-than-expected Canadian jobs data.
- USD/CAD extends slide and turns negative for the week.
The USD/CAD pair dropped during the US session to the lowest level in two days. Near the end of the week was hovering around 1.2930, more than a hundred pips below the daily top.
Jobs data from Canada showed that during May employment dropped by 7.5K and the unemployment rate remained at 5.8% and the Capacity Utilization Rate came in at 86.1%. Another report showed that Housing Starts reached 195.6K units. Employment and housing data came in below estimates.
Despite the data, many analysts continue to see a high probability of rate hike from the Bank of Canada in the coming months. Those expectations supported the Loonie in the market.
After rising to test the 1.3040
USD/CAD significant levels
The pair is back into the range of the previous trading days. While to the upside, remains unable to hold above 1.3000, on the downside, 1.2900/1.2920 continues to offer support.
A slide under 1.2900 would expose the 20-day moving average that stands at 1.2890/95: a close below that line could clear the way to more losses.
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