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Fundamental Forex Analysis

USD/CAD plummets to lows, around 1.3030 post-US/Canadian jobs report

  • Dismal US NFP exerted some pressure on the USD.
  • Upbeat Canadian jobs report added to the selling bias.

The USD/CAD pair fell around 40-pips, hitting fresh session lows at the 1.3030 zone in reaction to dismal US NFP/upbeat Canadian employment details.

According to the data released this Friday, the headline NFP came in to show that the US economy added 145K new jobs in December. The reading was softer than the previous month’s downwardly revised 256K and worse than consensus estimates pointing to a reading of 164K.

Adding to this, the average hourly earnings also fell short of market expectations. The disappointment was evident from a weaker tone around the US Treasury bond yields, which eventually turned out to be one of the key factors that exerted some pressure on the US dollar.

Conversely, the Canadian jobs report showed that the number of employed people increased by 35.2K in December as compared to an increase by 25K expected and the previous month’s awful fall of 71.2K. The data, to some extent, helped offset a subdued action around crude oil prices and offered some support to the commodity-linked currency – the loonie.

The pair extended previous session’s rejection slide from the 1.3100 handle and for now, seems to have snapped three consecutive days of winning streak. USD/CAD was last trading at the 1.3040 area, 0.12% below its opening price. 

Technical levels to watch

 

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