USD/CAD drops below 1.2100 after US and Canada jobs reports

USD/CAD came under modest bearish pressure in early American session.
US Dollar Index drops into the negative territory after Nonfarm Payrolls report.
Unemployment Rate in Canada edged higher to 8.2% as expected.

Eren Sengezer FXStreet

After rising to a daily high of 1.2134 during the European session, the USD/CAD pair lost its traction and was last seen losing 0.13% on the day at 1.2083.

DXY turns south after US May jobs report

The renewed USD weakness seems to be forcing USD/CAD to push lower in the last hour. The data published by the US Bureau of Labor Statistics revealed on Friday that Nonfarm Payrolls in the US rose by 559,000. This reading missed the market expectation of 650,000 and weighed on the greenback. Further details of the publication revealed that the Unemployment Rate declined to 5.8% from 6.1% and the Labor Force Participation Rate was little changed at 61.6%.

Reflecting the negative impact of these figures on the USD, the US Dollar Index is down 0.27% on the day at 90.25.

On the other hand, Statistics Canada reported that the Unemployment Rate in Canada ticked up to 8.2% in May as expected. The Net Change in Employment arrived at -68,000 and fell short of the market expectation of -20,000. Nevertheless, the USD's market valuation remains the primary driver of USD/CAD's movements.

Later in the session, the Ivey Purchasing Managers Index from Canada and Factory Orders data from the US will be featured in the economic docket.

Technical levels to watch for

USD/CAD

Overview
Today last price	1.2097
Today Daily Change	-0.0011
Today Daily Change %	-0.09
Today daily open	1.2108

Trends
Daily SMA20	1.2089
Daily SMA50	1.2321
Daily SMA100	1.2488
Daily SMA200	1.2764

Levels
Previous Daily High	1.212
Previous Daily Low	1.203
Previous Weekly High	1.2142
Previous Weekly Low	1.2029
Previous Monthly High	1.2352
Previous Monthly Low	1.2013
Daily Fibonacci 38.2%	1.2086
Daily Fibonacci 61.8%	1.2065
Daily Pivot Point S1	1.2052
Daily Pivot Point S2	1.1996
Daily Pivot Point S3	1.1962
Daily Pivot Point R1	1.2142
Daily Pivot Point R2	1.2176
Daily Pivot Point R3	1.2232

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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