USD/CAD drops below 1.2800 as CAD capitalizes on upbeat Canadian jobs report


  • USD/CAD dropped to its lowest level in more than two years below 1.2800.
  • Unemployment Rate in Canada declined to 8.5% in November.
  • US Dollar Index turned flat on the day near 90.70 after NFP report.

After spending the first half of the day fluctuating in a tight range near 1.2850, the USD/CAD came under renewed bearish pressure during the American trading hours and slumped to its lowest level since October 2018 at 1.2790. As of writing, the pair was trading a couple of pips above that level, losing 0.5% on a daily basis.

CAD comes out on top after US and Canada jobs data

The upbeat jobs report from Canada provided a boost to the loonie on Friday. The monthly data published by Statistics Canada showed that the Unemployment Rate declined to 8.5% in November, compared to analysts' estimate of 8.9%. Additionally, the Net Change in Employment arrived at +62,000 and surpassed the market expectation of 20,000 by a wide margin.

On the other hand, the US Dollar Index (DXY) struggled to stage a convincing recovery after the US Bureau of Labor Statistics' labour market data. The DXY is currently unchanged on the day at 90.68 and remains on track to close the third straight week in the negative territory.

Nonfarm Payrolls in the US rose by only 245,000 and fell short of experts' forecast for an increase of 469,000. Despite this disappointing reading, the S&P 500 Index surged to a new record high on Friday to show risk flows remain in control of financial markets. 

Meanwhile, the barrel of West Texas Intermediate (WTI) is rising nearly 1% on Friday and allowing the commodity-related CAD to continue to outperform its rivals.

Technical levels to watch for

USD/CAD

Overview
Today last price 1.2798
Today Daily Change -0.0070
Today Daily Change % -0.54
Today daily open 1.2868
 
Trends
Daily SMA20 1.3033
Daily SMA50 1.3147
Daily SMA100 1.3203
Daily SMA200 1.352
 
Levels
Previous Daily High 1.2941
Previous Daily Low 1.2852
Previous Weekly High 1.3112
Previous Weekly Low 1.2972
Previous Monthly High 1.337
Previous Monthly Low 1.2923
Daily Fibonacci 38.2% 1.2886
Daily Fibonacci 61.8% 1.2907
Daily Pivot Point S1 1.2833
Daily Pivot Point S2 1.2798
Daily Pivot Point S3 1.2744
Daily Pivot Point R1 1.2922
Daily Pivot Point R2 1.2976
Daily Pivot Point R3 1.3011

 

 

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