USD/CAD Jumps on Disappointing Canadian Jobs
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USD/CAD Jumps on Disappointing Canadian Jobs

After seeing outstanding results in recent months, Canadian job figures were disappointing this time – a drop of 9,300 jobs, falling short of an expected gain of 13,700 jobs. Also the unemployment rate rose from 7.9% to 8%. USD/CAD broke above resistance.

In the hour before the publication of the jobs data, USD/CAD went back up from 1.0165 to the almost 1.02 – the resistance line, but lost it after the release. The pair currently trades 1.0225 after already touching 1.0250. It’s still far from the next barrier:

Looking up, 1.0280 is a minor line of resistance above, followed by the veteran line of 1.04. Higher, 1.0550 and 1.0680 are the next resistance lines, but they’re quite far now.

Last month’s figures were superb. Employment Change showed a gain of 93,200 jobs, more than a five-fold of early expectations. Also the unemployment rate was a huge surprise, dropping under 8% for the first time in almost a year and a half.

In the hour before the publication of the jobs data, USD/CAD went back up from 1.0165 to the almost 1.02 – the resistance line.

At the beginning of the week, USD/CAD fell towards the 1.02 support line (the 2009 low) and hovered above it. On Wednesday, a fresh wave of US weakness sent the pair below this line, sending it 1.0160.

On Thursday, the report about Canadian Building Permits boosted the loonie – permits jumped by 6.5%, far better than 1.2% that was expected. Also last month’s figure, which was negative, was revised to the upside. USD/CAD went as low as 1.0107, just above the minor resistance line of 1.01, before bouncing higher.

Below 1.01, the next line is the ultimate line of USD/CAD parity, last seen in April. Below this line, 0.98 and 0.97 are the next barriers. Reaching these lines depends a lot on the price of oil.

At 12:30 GMT, the American Non-Farm Payrolls are due, and anything can happen, but the Canadian dollar now approaches this release at an inferior position.

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Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.