Canada posted a superb jobs report: a gain of no less than 42.9K and a drop of the unemployment rate below the 7% to 6.9%. Canada was expected to gain 21.5K jobs in March after a surprisingly disappointing drop of 7K jobs back in February. The unemployment rate was expected to remain unchanged at 7%.
USD/CAD floated above 1.1025 before the publication of the Canadian jobs report as well as the US one. Together with a not so high NFP, USD/CAD free falls below 1.10 and reaches 1.0960 before rebounding.
Full time employment is up 12.8K and the vast majority of the gain is part time jobs: 30.1K.
The Canadian dollar was on a recovery path but the 1.10 level on USD/CAD was certainly strong support. Canadian GDP grew by 0.5% in January. This is one of the reasons for the loonie’s strength during the week.
Later, the Canadian Ivey PMI is released. It is expected to rise from 57.2 to 58.3 points.
1.10 is a clear support level and 1.1070 works as support. For more, see the Canadian dollar forecast.Get the 5 most predictable currency pairs