Employment change showed a gain of only 15,200 jobs , lower than 20,200 that was predicted. The Canadian unemployment rate unexpectedly dropped from 7.9% to 7.6%. A big surprise. It was expected to remain unchanged. USD/CAD is rising.
While the drop in the unemployment rate is good news, the market currently focuses on the change in jobs. After many months of big improvements in the Canadian job market, recent months have shown signs of slowdown, with less jobs gained than earlier.
The Canadian dollar enjoyed rising oil prices and also the improvement in the general mood, thanks to bond buying made by the European central bank. Earlier in the week, the Canadian dollar retreated on the weak GDP release for September, that concluded a weak third quarter.
Just before the release, USD/CAD dropped from 1.0020 to parity. It traded between 1.0020 to 1.0050 on the early hours of Friday. It’s now rising, bouncing off the parity line and returning to the previous narrow range.
For more technical levels and analysis, see the USD/CAD forecast.
We have the US Non-Farm Payrolls coming up soon. They hold high expectations for a good figure. Here’s the Non-Farm Payrolls preview.
USD/CAD parity is still in sight.
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