Canada gained 1.8K jobs in October. Expectations stood on a gain of 9.5K. The unemployment rate is now 7.4%. A rate of 7.4%, like last month’s figure (before revisions) was expected.
USD/CAD traded made another move towards parity beofre the release. It’s important to note that the US Non-Farm Payrolls were published at the same time and they were superb. USD/CAD is now sliding – a stronger US means a stronger Canada.
Last month, Canada reported a huge gain of 52.1K jobs (before revisions).
In isolation, the weak Canadian report would have likely yielded a weaker loonie. The report was somewhat weaker than expected, although not relaly awful. Yet in light of the US report, things look different.
USD/CAD has support around 99.50, and it is quickly approaching these levels. For more, see the USD/CAD forecast.