USD/CAD closes to 1.2700 on upbeat US jobs data
- USD/CAD advances firmly towards 1.2700 amid broad US dollar strength across the board.
- The US Dollar Index continues posting day-after-day new 16-month highs close to 97.00.
- US Initial Jobless Claims rose for the first time in the year under 200K.
The USD/CAD advances firmly towards the 1.2700 as the New York session begins, up 0.18%, trading at 1.2694 at the time of writing. A risk-off market sentiment spurred demand for the greenback, as it keeps posting new year-to-date highs versus most G8 currencies. The US Dollar Index, which measures the greenback's performance against a basket of six rivals, is up 0.41%, sitting at 96.80, at time of writing, but earlier reached a new 16-month high at 96.93.
In the overnight session, the USD/CAD pair remained steady around the Tuesday low at 1.2664, meandering in a narrow trading range, before crucial US macroeconomic data.
US Initial Jobless Claims rose for the first time in the year under 200K
The US macroeconomic docket featured US Initial Jobless Claims, Durable Goods data, and GDP figures. The Initial Jobless Claims for the week ending on November 10 rose to 199K, lower than the 260K foreseen by analysts. The USD/CAD jumped 20 pips on the release, reaching a daily high above 1.2700.
October's Durable Goods Orders fell 0.5% on a monthly basis more than the 0.4% contraction expected by analysts. Excluding transportation, orders rose more than expectations, up to 0.5% vs. 0.2%, for the same period. Market participants seem to have ignored the data, as the Fed's current focus is on jobs and inflation.
US GDP for Q3 grew by 2.1%, in line with market participants' expectations. That said, USD/CAD's attention turns to the Fed's favorite gauge of inflation, the Personal Consumption Expenditure for October, expected at 4.6%.
Author
Christian Borjon Valencia
FXStreet
Christian Borjon began his career as a retail trader in 2010, mainly focused on technical analysis and strategies around it. He started as a swing trader, as he used to work in another industry unrelated to the financial markets.
