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The March Labour Force Survey revealed record-breaking job losses, with over 1m Canadians newly unemployed during the month. USD/CAD drifted lower on the news, economists at TD Securities report.

Key quotes

“The labour market shed 1 million jobs in March, with the unemployment rate rising by more than 2 p.p. to 7.8%.”

“Despite the unprecedented drop in employment, the initial reaction in USD/CAD has been complicated by the simultaneous announcement from the Fed of new lending programs. This, alongside looming OPEC news today and tomorrow complicates the reaction in USD/CAD.”

“We think that dips in USD/CAD should be bought; 1.40 is the ‘effective floor’ with 1.3920/50 being major support.”