Swing Trades: USD/CAD, EUR/USD

Dukascopy Bank Team Dukascopy Bank SA

USD/CAD: Canadian Employment Change

The USD/CAD dropped significantly to continue depreciations after both Canadian and US employment reports came in. The Canadian Dollar depreciated against the Greenback by 42 base points or 0.34% to return into the 1.2540 area.

Statistics Canada reported that the economy marked a weaker-than-expected rise of 10K in jobs in September, while the unemployment rate remained at the lowest level in nine years of 6.2% in the reported period. An increase in full-time jobs offset weakening in part-time positions with the main support from gains in the public-sector employment. Moreover, wage growth expanded at a fastest pace of 2.2%, fuelling possibility that the Bank of Canada could raise rates in December.

EUR/USD: US Non-Farm Employment Change

The Euro fell slightly against the US Dollar, as the job market reports showed mixed readings on Friday. The EUR/USD currency pair edged lower to the 1.1681 mark, losing 19 base points or 0.16%, though the strong bullish sentiment managed to keep the exchange rate near the 1.1730 level.

The Labour Department showed that the US job market faced unexpected decrease in jobs, as the economy lost 33K positions in September, reflecting the impact of Hurricanes Harvey and Irma. However, the unemployment rate declined to a new low of 4.2% in the same period. Following the report, market expectations for the Federal Reserve to raise rates in December were still high.

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Dukascopy Bank SA

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EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.