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Fundamental Forex Analysis

USD/CAD keeps the red near weekly lows, below mid-1.3900s post-US/Canadian jobs data

  • USD/CAD witnessed some follow-through selling for the second straight session on Friday.
  • Mixed Canadian/US monthly jobs data failed to provide any meaningful impetus to the pair.

The USD/CAD pair remained depressed and refreshed weekly lows, around the 1.3925 region in reaction to Canadian/US employment details.

Against the backdrop of a mildly positive tone surrounding oil prices, the commodity-linked currency loonie got an additional boost from Friday’s slightly better-than-expected Canadian employment details. The report showed that Canada lost 1.99 million jobs in April as compared to 4 million expected and the unemployment rate jumped to 13% vs. 18% anticipated.

On the other hand, the US dollar failed to gain any respite following the release of the closely watched US monthly jobs report. The headline NFP print showed that the US economy shed 20.5 million jobs in April. Meanwhile, the unemployment rate surged to 14.7% and shattered the post-World War II record of 10.8% touched in November 1982.

Given that the market might have already started pricing in the possibility that the Fed might be forced to push interest rates below zero, the data did little to provide any meaningful impetus. Nevertheless, the pair maintained its offered tone for the second consecutive session and seems poised to extend the overnight sharp retracement slide from over two-week tops.

Technical levels to watch

 

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