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  • USD/CAD fell sharply in the early American session on Friday.
  • Unemployment Rate in Canada declined to 9% in September.
  • US Dollar Index dropped to fresh 20-day lows below 93.30.

The USD/CAD pair came under strong bearish in the early trading hours of the American session and slumped to its lowest level since mid-September at 1.3135. As of writing, the pair was down 0.42% on a daily basis at 1.3138.

CAD gathers strength on impressive Canadian jobs report

The monthly data published by Statistics Canada showed that the Unemployment Rate in September declined to 9% from 10.2% in August and came in much better than the market expectation of 9.7%. Further details of the publication showed that the Net Change in Employment rose by 378,000, compared to analysts’ estimate for an increase of 156,600, and provided a boost to the loonie.

On the other hand, the ongoing USD selloff seems to be helping USD/CAD push lower on Friday.

In the absence of significant macroeconomic data releases from the US, the market sentiment continues to impact the USD’s performance against its rivals. With the S&P 500 futures gaining 0.6% ahead of the opening bell, the US Dollar Index is at its lowest level in 20 days at 93.22, losing 0.37% on a daily basis.

Meanwhile, the barrel of West Texas Intermediate is trading a little below $41 but doesn’t seem to be weighing on the commodity-sensitive CAD for the time being.

Technical levels to watch for