USD/CAD drops sharply toward 1.32 on strong Canadian jobs report


  • Unemployment rate in Canada dropped to 5.5% in September from 5.7% in August.
  • Crude oil prices cling to modest daily gains on Friday. 
  • US Dollar Index slumps to multi-week lows below 98.50.

The USD/CAD pair came under strong bearish pressure in the early trading hours of the American session after the employment data from Canada came in better than expected. After losing more than 70 pips in a matter of minutes and touching its lowest level since early October at 1.3206, the pair recovered slightly and was last seen trading at 1.3215, losing 0.57% on a daily basis.

Upbeat Canadian jobs report supports the CAD's rally

Statistics Canada on Friday announced that the unemployment rate in Canada dropped to 5.5% in September from 5.7% in August and bettered the market expectation of 5.7%. More importantly, the total number of employed rose 53,700 and surpassed experts' forecast of 10,000 by a wide margin.

Additionally, heightened hopes of the United States (US) and China reaching a partial trade deal allowed crude oil prices to build on Thursday's gains and provided an additional boost to the commodity-sensitive Loonie. At the moment, the barrel of West Texas Intermediate was posting modest daily gains near $54.

On the other hand, the sharp upsurge witnessed in the GBP/USD pair keeps the Greenback under selling pressure on Friday with the US Dollar Index dropping to its lowest level in three weeks at 98.24 and makes it difficult for the pair to stage a meaningful recovery.

The University of Michigan's Consumer Confidence Index and Boston Fed President Eric Rosengren's speech will be looked upon for fresh impetus later in the session.

Technical levels to watch for

USD/CAD

Overview
Today last price 1.3217
Today Daily Change -0.0071
Today Daily Change % -0.53
Today daily open 1.3288
 
Trends
Daily SMA20 1.3278
Daily SMA50 1.3267
Daily SMA100 1.3245
Daily SMA200 1.3288
 
Levels
Previous Daily High 1.3348
Previous Daily Low 1.3268
Previous Weekly High 1.3349
Previous Weekly Low 1.3205
Previous Monthly High 1.3384
Previous Monthly Low 1.3134
Daily Fibonacci 38.2% 1.3299
Daily Fibonacci 61.8% 1.3317
Daily Pivot Point S1 1.3255
Daily Pivot Point S2 1.3222
Daily Pivot Point S3 1.3176
Daily Pivot Point R1 1.3334
Daily Pivot Point R2 1.338
Daily Pivot Point R3 1.3413

 

 

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD consolidating as markets digest the new US-Sino trade truce

EUR/UDS is trading around 1.1030, little changed. Markets are digesting the US-Sino handshake deal that prevents new US tariffs that were planned for Tuesday. Euro-zone industrial output is due out.

EUR/USD News

GBP/USD slips below 1.26 as Brexit talks drag

GBP/USD has kicked off the new week with a drop below 1.26 as Brexit optimism fades. Intense weekend talks have failed to result in an accord. Negotiations continue ahead of the EU Summit. 

GBP/USD News

USD/JPY retreats from 2-1/2 month tops, still comfortable above 108.00 handle

A partial US-China trade deal on Friday weighed on the JPY’s safe-haven status. Traders now seemed inclined to book profit despite a pickup in the USD demand.

USD/JPY News

Gold climbs to session tops, inching closer to $1500 mark

Gold edged higher through the early European session and is currently placed at the top end of its daily trading range, around the $1495 region.

Gold News

Forex Today: Markets skeptical about US-Sino trade truce and sterling suffers a hangover as talks continue

Markets are cautious regarding the US-Sino partial trade deal. The world's largest economy agreed on a "hand-shake" agreement which is yet to be written. It includes a Chinese commitment to buy agrifoods.

Read more

Forex MAJORS

Cryptocurrencies

Signatures