USD/CAD rises toward daily highs boosted by the USD after employment reports
|- US payrolls rise by 263K against expectations of 250K.
- Canada: Net change in employment during September 21K vs 20K.
- Loonie drops versus the dollar, although it hits fresh daily highs against most of its rivals.
- USD/CAD rises toward daily highs amid a stronger dollar.
The USD/CAD climbed from 1.3722 to 1.3760, matching the daily highs following the September employment reports from Canada and the US. Both showed better-than-expected numbers. The dollar rose across the board but also the loonie, although at a slower pace.
Positive reports in Canada and the US
The US official employment report showed non-farm payrolls rose by 263K in September, above the 250K expected. The unemployment rate dropped unexpectedly from 3.7% to 3.5%.
In Canada, net change in employment was positive by 21.1K during September, in line with market consensus. The unemployment rate fell from 5.4% to 5.2%, with the participation rate falling from 64.8% to 64.7%.
The greenback rose after the figures, boosted by higher US yields. The US 10-year yield is at 3.90%, while the 2-year reached 4.34%, a few points below the cycle highs.
Despite the dollar’s strength, so far USD/CAD remains in the range between 1.3760 and 1.3705, still undecided. The loonie printed fresh highs versus currencies like AUD, NZD, GBP and EUR after the report.
Technical levels
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