USD/CAD erases daily gains, settles below 1.3050 on upbeat Canadian jobs report


  • Unemployment Rate in Canada dropped to 5.6% in December. 
  • Nonfarm Payrolls in US rose less than expected in December.
  • Falling crude oil prices limit commodity-sensitive CAD's gains.

The USD/CAD pair lost nearly 50 pips in a matter of minutes with the initial market reaction to the labour market data from the US and Canada. After touching a daily low of 1.3027, however, the pair started to erase its losses and was last seen trading at 1.3045, losing 0.07% on the day.

CAD capitalizes on falling Unemployment Rate

Statistics Canada reported that the Unemployment Rate in Canada fell to 5.6% in December from 5.9% and came in better than the market expectation of 5.8% to help the CAD gather strength. On the other hand, Nonfarm Payrolls in the US increased by 145,000 in December to fall short of the market expectation of 164,000. In addition, the wage annual inflation, as measured by the Average Hourly Earnings, edged lower to 2.9% from 3.1%.

The US Dollar Index lost its traction and erased its daily gains after the dismal data and is now flat on the day near 97.40.

Despite the strong Canada data and USD weakness, falling crude oil prices make it difficult for the commodity-sensitive loonie to preserve its strength. At the moment, the barrel of West Texas Intermediate (WTI) is down 0.5% on the day at $59.30.

Technical levels to watch for

USD/CAD

Overview
Today last price 1.3048
Today Daily Change -0.0020
Today Daily Change % -0.15
Today daily open 1.3068
 
Trends
Daily SMA20 1.3083
Daily SMA50 1.3174
Daily SMA100 1.32
Daily SMA200 1.3249
 
Levels
Previous Daily High 1.3106
Previous Daily Low 1.3026
Previous Weekly High 1.3085
Previous Weekly Low 1.2943
Previous Monthly High 1.3322
Previous Monthly Low 1.2951
Daily Fibonacci 38.2% 1.3075
Daily Fibonacci 61.8% 1.3056
Daily Pivot Point S1 1.3027
Daily Pivot Point S2 1.2986
Daily Pivot Point S3 1.2947
Daily Pivot Point R1 1.3107
Daily Pivot Point R2 1.3146
Daily Pivot Point R3 1.3187

 

 

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD stabilizes amid upbeat IFO data, coronavirus concerns

EUR/USD is trading below 1.0850 as the German IFO Business Climate beat with 96.1. Coronavirus headlines are weighing heavily on the market. The US dollar remains bid despite falling US yields. 

EUR/USD News

GBP/USD dips below 1.29 on USD strength

GBP/USD has dipped below 1.29 as the dollar gains ground amid coronavirus headlines. The EU and the UK prepare for formal post-Brexit due to talks kicking off next week. 

GBP/USD News

Forex Today: Coronavirus consumes markets, Gold eyeing $1,700, German data awaited

Coronavirus: The respiratory disease continues spreading and is taking its toll. Chinese President Xi Jinping has sounded the alarm over the outbreak at the Communist Party's gathering. 

Read more

Gold hits fresh multi-year tops, eyeing $1700 mark

Gold continues scaling higher amid a fresh wave of the global risk-aversion trade. Heightened fears about the economic impact of the deadly coronavirus rattled investors. Absent relevant economic data is unlikely to hinder the ongoing strong move up.

Gold News

FXStreet launches Real-Time Trading Signals

FXStreet Signals offers access to explanatory live webinars, real-time notifications when signals are triggered and exclusive membership to the company’s Telegram group, where users get direct guidance by our analysts and get room to discuss and interact.

More info

Forex MAJORS

Cryptocurrencies

Signatures