Canadian Dollar Retreats on More Job Losses

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Canada lost 18.6K jobs in November. A gain of 18.1K jobs was expected, so this is a big disappointment. The unemployment rate was predicted to remain unchanged at 7.3% and it also fell short of expectations by rising to 7.4%.

The Canadian dollar strengthened towards the release. USD/CAD pierced through 1.01 and reached 1.0075. The publication sent the pair all the way up again to 1.0130.

Last month, Canada lost 54K jobs, erasing a big gain in September. A second month of losses is quite worrying. A rate cut in the upcoming months is possible.

Minor resistance is at 1.0143. 1.02 is an important level to watch if the pair continues rising. Support is at 1.0060, followed by USD/CAD parity.

For more on the loonie, see the USD/CAD forecast.

Markets are now tense towards the job figures from Canada’s southern neighbor. The US is officially expected to enjoy a gain of 120K, although this could be higher. In the current environment, good US job figures are negative for the dollar.

See the Non-Farm Payrolls preview for all the details about this volatile event.

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Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned the significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

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