Forex: USD/CAD jumps above 1.0700 after unexpected jobless rate increases

Fri, Nov 6 2009, 12:13 GMT
http://www.fxstreet.com

FXstreet.com (Barcelona) – The Canadian Dollar is declining against the Dollar in the minutes following the Unemployment rate data release with a unexpected increase in October. The USD/CAD has jumped more than 60 pips from 1.0680 ahead the data to hit intra-day high at 1.0740.

pair is continuing with its advance from 1.0630, intra-day low in the European session and it has risen around 110 pips to reach daily highs. Currently the pair is trading around 1.0700/10, trying to hold above 1.0700 level.

Canada has lost 43.000 jobs in October, a unexpected decline against the increase expected of 10.300 in October. Unemployment rate in Canada rise to 8.6% in October from 8.4% in September. Market expected a unemployment rate unchanged at 8.4.

Valeria Bednarik, FXstreet.com collaborator, comments: “Canada has just published their employment data; pretty bad in general, with 43.2K job lost instead of 10.K wins expected, while unemployment rate rose to 8.6% from 8.4%. Not a law, but U.S. data tends to come in line with this one. If data is so bad in America, could dollar rose today?”

USD/CAD

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