USD/CAD collapses as US Nonfarm payrolls disappoint while Canada adds 150K jobs 5-times expectations


  • US Nonfarm payrolls report rose by 210K, lower than the 550K estimated.
  • Canadian Employment Change increased 5-times of estimations while the Unemployment Rate falls.
  • USD/CAD threatens to break the 200-hour SMA, that once breached, would send the pair tumbling towards 1.2700.

During the New York session, the USD/CAD plunges on a dismal US Nonfarm payrolls report, down 0.46%, trading at 1.2746 at the time of writing. In the last hour, US and Canada reported employment figures.

US Nonfarm payrolls disappoint, while Canadian Employment Change smash expectations

On Friday, the US Bureau of Labor Statistics (BLS) reported that in November, the US economy added just 210K new jobs, versus the 550K expected. Although the headline miss is substantial, it seems to ease investors’ reaction, as the Unemployment Rate for November fell three tenths from 4.5% in October to 4.2%. 

Apart from the US, the Canadian economic docket, the Employment Change for November, showed that the Canadian economy added 153.7K new jobs, crushing economists’ expectations of 35K. Further, the pace of the labor market accelerated versus the previous month’s figures of just 35K. Worth noting of the employment report, 79.9K of the total jobs are full-time. Another positive from November’s data is that Unemployment Rate dropped from 6.7% to 6.0%.

Market’s reaction

That said, the USD/CAD pair reaction plummeted from 1.2819 down to 1.2760, bouncing off those lows towards 1.2786. However, at the time of writing, USD/CAD is extending its losses severely, as it is testing the S2 daily pivot point at 1.2747.

USD/CAD Price Forecast: Technical outlook

The USD/CAD in the 1-hour chart has a downward bias after printing a 72-pip bearish candle, breaking essential support levels, like the 50 and the 100-hour simple moving averages (SMA’s).

Furthermore, at press time, the 200-hour SMA is under pressure at 1.2742, which, if it gives way, would extend USD losses against the Loonie, which could witness the USD/CAD pair tumbling down to the S3 daily pivot at 1.2717, followed by a test of the 1.2700 figure.

USD/CAD

Overview
Today last price 1.2746
Today Daily Change -0.0045
Today Daily Change % -0.46
Today daily open 1.2808
 
Trends
Daily SMA20 1.2627
Daily SMA50 1.2536
Daily SMA100 1.2577
Daily SMA200 1.2476
 
Levels
Previous Daily High 1.2838
Previous Daily Low 1.2778
Previous Weekly High 1.28
Previous Weekly Low 1.2628
Previous Monthly High 1.2837
Previous Monthly Low 1.2352
Daily Fibonacci 38.2% 1.2801
Daily Fibonacci 61.8% 1.2815
Daily Pivot Point S1 1.2778
Daily Pivot Point S2 1.2749
Daily Pivot Point S3 1.2719
Daily Pivot Point R1 1.2838
Daily Pivot Point R2 1.2867
Daily Pivot Point R3 1.2897

 

 

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD clings to modest daily gains near 1.1350 after US data

EUR/USD stays afloat in the positive territory near 1.1350 in the early American session as the greenback struggles to gather strength on retreating US T-bond yields. The data from the US revealed that Housing Starts and Building Permits rose by 1.4% and 9.1% on a yearly basis in December, respectively.

EUR/USD News

GBP/USD holds its ground in the positive territory above 1.3600

GBP/USD holds above 1.3600 in the second half of the day on Wednesday supported by the modest selling pressure surrounding the dollar. The benchmark 10-year US Treasury bond yield stays in the red in the early American session and the US Dollar Index edges lower toward 95.50.

GBP/USD News

Gold advances above $1,820 amid declining US T-bond yields

Gold continues to push higher on Wednesday and trades above $1,820. The benchmark 10-year US Treasury bond yield seems to have lost its traction following a three-day rally, supporting XAU/USD's upside.

Gold News

Crypto markets cling to the idea of a bullish breakout

BTC price is slowing down as it sticks close to a crucial support level with no volatility in sight. ETH and XRP are following the big crypto’s lead, showing no directional bias whatsoever.

Read more

Microsoft bets big on Metaverse with $69bln deal for Activision Blizzard

The move will give the tech giant access to Activision’s 390 million monthly users and headline franchises such as Call of Duty, Warcraft and Candy Crush. Find out why Microsoft has made this move.

Read more

Forex MAJORS

Cryptocurrencies

Signatures