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A disappointing jobs report from Canada: the nation lost 2,300 jobs, worse than a gain that was expected. In addition, the unemployment rate advanced to 7.3% with no change in the participation rate. This is clearly worse than expected.

USD/CAD is rising to 1.33, around 50 pips.

To add fuel to the fire for USD/CAD, the US import price release coming at the same time showed a smaller than expected drop of 0.3% in comparison to -0.7% expected. This is not a major release, but still supports the US dollar.

Canada was expected to report a gain of 9,000 jobs in February, after a loss of 5,700 in January. The unemployment rate was predicted to remain unchanged at 7.2% with the participation rate at 65.9%.

USD/CAD traded around 1.3250 around the publication, up from the lows but still low, reflecting the strength of the Canadian dollar thanks to recovering oil prices.

WTI crude oil traded just under $39 with Brent well above $40. The EIA said that prices may have bottomed out for now and this helps the loonie. In addition, the Bank of Canada made its rate decision this week and the tone was not too dovish: they maintained the recent outlooks and are also waiting for news from the Canadian government with a new stimulus plan planned for presentation this month.

More:  Elliott Wave Analysis on USDCAD

Here is how this  turnaround looks on the USD/CAD chart:

USDCAD March 11 higher on Canadian jobs report