USD/CAD extends losses sub-1.4000, approaching 1.3900
|- USD/CAD extends losses below 1.4000 and hits session lows near 1.3900.
- Better than expected Canadian employment data and higher oil prices supporting CAD.
- FX analysts at TD Securities see the USD/CAD vulnerable while below 1.4000.
The USD/CAD maintains its negative bias for the second consecutive day and is on track to depreciate a 1.2% on the week, nearing the 1.3900 on Friday's US session. The US dollar is losing ground after having peaked at 1.4170 on Thursday, hammered by a downshift in the Fed fund futures curve, which hinted at negative rates in January 2021.
Employment data support the CAD
The simultaneous release of the US and Canadian employment figures has been buoyed the loonie against the greenback. The CAD has extended its positive trend after a report showing a decline of 1.99 million jobs in Canada in April, which is a substantial improvement from the 4 million loss expected.
Furthermore, the recovery on oil prices, which are set for the second consecutive weekly gain has increased confidence in the commodity-linked Canadian dollar.
The USD, however, has been barely moved by the better than expected US Non-Farm Payrolls report. US Private employment declined by 20.5 million in April, which is better than the 22 million job loss expected, although it has boosted the jobless rate to 14%, the highest rate since WW II.
USD/CAD remains a fade below 1.4000 – TDS
The FX analysts’ team TD securities see the USD/CAD fundamentally challenged, and weak while below 1.4000, “We think USDCAD remains a fade below the 1.40 mark. A close above 1.40 would put the 1.4080/4150 pivots back into view. On the downside 1.3920 and 1.3850 should be supports
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.