Canada reported a gain of 39.8K jobs in December. Early expectations stood on a rise of 4K. The unemployment rate is 7.1%. Expectations stood on a rise from 7.2% to 7.3%.
USD/CAD is now plunging to 0.9875, with a small gap. The pair traded above the 0.9910 line before the release. It’s important to remember that the US Non-Farm Payrolls report was published at the exact same time.
US NFP showed a gain of 155K jobs and an unemployment rate of 7.8% – it allowed profit taking of dollar longs.
For the month of November, Canada posted an excellent report, with a gain of 59.3K jobs, far better than expected. Also the unemployment rate surprised with a drop to 7.2%.
USD/CAD was relatively stable in a week that saw big moves in the yen, euro and also the pound, but now it is on the move.
For more, see the Canadian dollar forecast.Get the 5 most predictable currency pairs