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  • Loonie among top performers of the American session on Friday.
  • USD/CAD about to post lowest weekly close since December 2019.

The USD/CAD dropped further and fell to 1.3021, reaching the lowest level since September 1. It remains near the bottom, under pressure and on its way to the lowest weekly close of the year.

The US dollar is falling again on Friday as the US election remains open; however, Joe Biden is set to reach the magic number of electoral votes any moment. The difference between US President Donald Trump and Biden continues to widen in the key states.

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The momentum in USD/CAD points to the downside and it could test the 1.3000 area that is the critical support. A daily close under 1.3000 would suggest more losses ahead with the first target seen at the 2020 low at 1.2950.

Employment reports

Employment data in the US showed an increase in payroll by 638K, above the 580K expected. The key number was the decline in the unemployment rate to 6.9%, even as the labor participation rate rose.

In Canada, employment data for October came in slightly below expectations. “Employment was still running over 600k below pre-shock February levels in October, and the pace of employment growth is clearly slowing. The 84k increase in employment in October was about a quarter of the average over the prior three months”; said RBC analysts. Later, the Ivey Purchasing Manager Index came in for October at 54.5, above the 51.5 expected.

The numbers did not impact on markets that continue to focus on the US election.

Technical levels